Moderate

Var (kY)= ____________?

Correct answer: B. k2 Var(Y)

  • A. k Var (Y)
  • B. k2 Var(Y)
  • C. Var(Y)
  • D. k2

Explanation

Multiplying a random variable by k multiplies its variance by the square of k: Var(kY) = k²Var(Y). Variance measures squared deviations, which is why k is squared.

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