I'm trying to understand a problem involving a coin being thrown 6 times and either being heads or tails.
I understand how to get the variance of X (heads) and Y (tails), mean n*p*(1-p). But how do I get the Variance of (X+Y)? I don't know how to find the covariance either. I don't know what to use for the x and y values.
The obvious way of calculating Var(X - Y), at least when n is small (eg. n = 6), is to define the random variable W = X - Y and construct a probability table for W. What values can W have? What is the probability of each of those values?
Once you've made this table, use it to calculate E(W) and E(W^2) and substitute those answers into the definition of Var(W).