What is an intuitive explanation of why $\displaystyle \text{Var}(Y) = E(\text{Var}(Y|X)) + \text{Var}(E(Y|X)) $? In laymen terms, it is equal to the variance of the conditional expectation plus the expected value of the conditional variance.
What is an intuitive explanation of why $\displaystyle \text{Var}(Y) = E(\text{Var}(Y|X)) + \text{Var}(E(Y|X)) $? In laymen terms, it is equal to the variance of the conditional expectation plus the expected value of the conditional variance.
my lecturer told me that there is no simple intuitive explanation to this and it has a complex proof to it as well.
Law of total variance - Wikipedia, the free encyclopedia
Theres a proof in there
my lecturer told me that there is no simple intuitive explanation to this and it has a complex proof to it as well.
Law of total variance - Wikipedia, the free encyclopedia
Theres a proof in there