How Do You Calculate Var(X) in a Conditional Variance Problem?

In summary, the conversation is about the discrete probability distribution for the random variable X, given two conditions Y=G and Y=D. The given information includes the conditional probabilities, expectations, and variances for X. It is mentioned that the conditional variance can be calculated using the formula Var(X)=E[Var(X|Y)] + Var(E[X|Y]) and that E[X^2] can be calculated by conditioning on Y. The conversation also discusses a possible mistake in calculating the conditional probability mass function for Y=G. The final corrected results for E[X|Y=G], E[X|Y=D], E[X^2|Y=G], E[X^2|Y=D], Var(X|Y=G), Var(X|Y
  • #1
grimster
39
0
the discrete prob distribution

X/Y - G - D
0 - 0,1 - 0,15
1 - 0,1 - 0,3
2 - 0,05 - 0,3


this is what i have so far:
E[X|Y=D]=0,2
E[X|Y=g]=0,9
E[X]=0,725
E[X^2|Y=D]=0,3
E[X^2|Y=G]=1,5
Var(X|Y=G)=0,69
Var(X|Y=D)=0,26


i.e. [X]=0,2*0,25 + 0,9*0,75=0,725

is the previous correct and how do i find Var(X)?
the conditional variance forumal is:
Var(X)=E[Var(X|Y)] + Var(E[X|Y])
 
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  • #2
:confused: I am not sure but it seems easier to calculate Var[X]= E[X^2]- (E[X])^2
you already have E[X]. you can try to calculate E[X^2] by conditioning on Y.
 
  • #3
Millie said:
:confused: I am not sure but it seems easier to calculate Var[X]= E[X^2]- (E[X])^2
you already have E[X]. you can try to calculate E[X^2] by conditioning on Y.


how do i do that?

secondly, i think I've might have made a mistake. i think i forgot to calculate the conditional probability mass function.

that would mean distribution, given Y=G) is i.e.
0 - 0,2
1 - 0,4
2 - 04

so then E[X|Y=G]=0,4+0,8=1,2

what is it? 1,2 or 0,9? i think the former 'result' is correct. so forget the other results, these are the corrected(?) ones

E[X|Y=G]=1,2
E[X|Y=D]=0,8
E[X^2|Y=G]=2
E[X^2|Y=D]=1,2
Var(X|Y=G)=0,56
Var(X|Y=D)=0,56
E[X]=1,1

i want to find Var(X)...
 
  • #4
Your notation is confusing -- at least for me. What does the table
X/Y - G - D
0 - 0,1 - 0,15
1 - 0,1 - 0,3
2 - 0,05 - 0,3
stand for?
 

Related to How Do You Calculate Var(X) in a Conditional Variance Problem?

1. What is conditional variance?

Conditional variance is a measure of the variability or dispersion of a random variable given a specific condition or set of conditions. It is used to describe how much the values of a variable may deviate from the mean when certain conditions are met.

2. How is conditional variance calculated?

Conditional variance is calculated by taking the average of the squared differences between each value of a random variable and its conditional mean. This can be expressed mathematically as Var(Y|X) = E[(Y - E(Y|X))^2].

3. Why is conditional variance important?

Conditional variance is important because it allows us to understand how the variability of a random variable changes depending on certain conditions. This can help us make more accurate predictions and decisions in various fields such as finance, economics, and data analysis.

4. What is the difference between conditional variance and unconditional variance?

The main difference between conditional variance and unconditional variance is that conditional variance takes into account a specific condition or set of conditions, while unconditional variance considers all possible outcomes without any restrictions. Additionally, unconditional variance is often used to describe the overall variability of a random variable, while conditional variance is used to describe variability within a specific subset of data.

5. How can conditional variance be interpreted?

Conditional variance can be interpreted as a measure of the dispersion of data points around the conditional mean. A higher conditional variance indicates a wider spread of data points, while a lower conditional variance indicates a tighter cluster of data points. It can also be used to compare the variability of different subsets of data under the same condition.

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