I'm given this problem. σ²(t) = V((1-t)X + tY) = at² + 2bt+c where
a=? b=? c=?
E(X) = 2
E(Y) = 3
E(X^2) = 53
E(Y^2) = 45
E(XY) = -21
Can someone please explain what σ²(t) = V((1-t)X + tY) means and how to solve it?
Thanks.
I'm given this problem. σ²(t) = V((1-t)X + tY) = at² + 2bt+c where
a=? b=? c=?
E(X) = 2
E(Y) = 3
E(X^2) = 53
E(Y^2) = 45
E(XY) = -21
Can someone please explain what σ²(t) = V((1-t)X + tY) means and how to solve it?
Thanks.
Alright, does this make any sense...
I calculated:
cov(X,Y) = -27
V(X) = 49
V(Y) = 54
so, for: at^2 + 2bt + c
a = V(x)= 49
b = cov(X,Y) = -27
c = V(Y) = 54
I'm not sure that what he's looking for.
Then how would I find the value of t* that minimizes this? t* = -σy/σx