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a.Is this statement true: there exist two independent random variables X and Y s

ID: 3292808 • Letter: A

Question

a.Is this statement true: there exist two independent random variables X and Y such that Var [X] = Var [Y] = 1? If true, find such example, otherwise prove why this is impossible.

b. Consider this question related to a. Is this statement true: there exist two independent random variables X and Y such that Var [X] = Var [Y] = 1, and also E[X] = E[Y] = 0? If true, find such example, otherwise prove why this is impossible.

c. Consider this question related to a and b. . Is this statement true: there exist two independent random variables X and Y such that Var [X] = Var [Y] = 1;E[X] = E[Y] = 0, and also Cov [X, Y] = 0.5? If true, find such example, otherwise prove why this is impossible. (here Cov [X, Y] stands for the covariance of X and Y.

d. Consider this question related to a, b, and c . Is this statement true: there exist two independent random variables X and Y such that Var [X] = Var [Y] = 1;E[X] = E[Y] = 0, and also Cov [X, Y] = 0? If true, find such example, otherwise prove why this is impossible.

Explanation / Answer

a) True

Example : X~N(0,1) and Y~N(0,1) where X and Y are independent random variables.

b) True

Example : X~N(0,1) and Y~N(0,1) where X and Y are independent random variables.

c) Covariance between two random variables is a measure of linear relation between X and Y.

If X and Y are independent random variables, then implies there is no relationship between them that implies Cov(X,Y) should be equal to 0, it can not be 0.5

d) True

Example : X and Y are two independent standard normal variables.