Example 1: Expectation and variance from a table
X takes the values 0, 1, 2, 3 with probabilities 0.1, 0.3, 0.4, 0.2. Find E(X), Var(X), E(3X + 2) and Var(3X + 2).
E(X) = 0(0.1) + 1(0.3) + 2(0.4) + 3(0.2) = 1.7E(X²) = 0(0.1) + 1(0.3) + 4(0.4) + 9(0.2) = 3.7Var(X) = 3.7 − 1.7² = 0.81E(3X + 2) = 3(1.7) + 2 = 7.1Var(3X + 2) = 3² × 0.81 = 7.29
Answer: E(X) = 1.7, Var(X) = 0.81, E(3X + 2) = 7.1, Var(3X + 2) = 7.29