Exam P Practice Problem 18 – Variance of a Sum

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Problem 18A
A company is at risk for two financial losses X and Y. The company is at risk for no other financial risk. Suppose that X and Y are jointly distributed according to the density function f(x,y)=4 \ x^2 where 0<x<1 and 0<y<x. What is the variance of the total financial loss faced by this company?

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Problem 18B
A company is at risk for two financial losses X and Y. The company is at risk for no other financial risk. Suppose that X and Y are jointly distributed according to the density function f(x,y)=\alpha^2 \ e^{-\alpha \ x} where \alpha>0 and x>0 and 0<y<x. What is the variance of the total financial loss faced by this company?

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Answers

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