How do i prove that E[R^2] is greater than or equal to (E[R])^2??

Printable View

- July 21st 2009, 11:18 AMPink LadyProving an equality
How do i prove that E[R^2] is greater than or equal to (E[R])^2??

- July 21st 2009, 02:50 PMLaurent
This is related to the variance: on one hand, we define , which is (obviously?) nonnegative. On the other hand, you should expand the above expression in order to show that . Since this is nonnegative, you must have , and this is it. So you need to justify why the first expression of is nonnegative, and why it equals the second one.

(There would be another more advanced/general answer involving convexity (and Jensen inequality), but you don't need that. )