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1 Let X and Y be random variables defined on a common proba.pdf

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1. Let X and Y be random variables defined on a common probability space. Assuming Var(X)<, show that Var(X)=EVar(XY)+Var(E[XY]). [Hint: Use defn. of Var(X) and conditional expectation tricks.] [1].

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1. Let X and Y be random variables defined on a common probability space. Assuming Var(X)<, show that Var(X)=EVar(XY)+Var(E[XY]). [Hint: Use defn. of Var(X) and conditional expectation tricks.] [1]

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