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Question
What are the properties of Mathematical expectation?
Solution
Properties of Mathematical expectation:
i. E(a) = a, where ‘a’ is a constant.
ii. E(aX) = aE(X)
iii. E(aX + b) = aE(X) + b, where ‘a’ and ‘b’ are constants.
iv. If X ≥ 0, then E(X) ≥ 0
v. V(a) = 0
vi. If X is random variable, then V(aX + b) = a2V(X)
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