Exercise · ZW-VARIANCE-008 · ★★☆ Intermediate
\(X\) equals \(-2\) or \(2\) with probability \(\tfrac12\) each. Compute \(\operatorname{Var}(X)\).
Choose one option.
Show answer
- C. \(4\)
Exercise · ZW-VARIANCE-008 · ★★☆ Intermediate
Choose one option.
\(E[X]=0\) and \(E[X^2]=4\), hence \(\operatorname{Var}(X)=4\). A mean of 0 does not mean there is no spread.
The variance \(\operatorname{Var}(X)\) of a random variable \(X\) measures how spread out its values are around its expectation \(E\): it is the expected value of the squared deviation.