Microsoft Word – HW1_14s Prove the following rules (formulas) by the definition of variance and covariance. (1) Var(X-Y) = Var(X) + Var(Y) – 2Cov(X,Y) (2) Var(aX+bY) = a2Var(X) + b2Var(Y) + 2abCov(X,Y)
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