Question:medium

Let \(X_1, X_2, X_3\) be three variables with means 3, 4 and 5 respectively, variances 10, 20 and 30 respectively and \(cov (X_1, X_2) = cov (X_2, X_3) = 0\) and \(cov (X_1, X_3) = 5\). If, \(Y = 2X_1 +3X_2+4X_3\) then, Var(\(Y\)) is:

Show Hint

When calculating the variance of a linear combination, pay close attention to the signs of the coefficients and the covariance terms. The formula is \( \text{Var}(\sum a_i X_i) = \sum a_i^2 \text{Var}(X_i) + \sum_{i \neq j} 2 a_i a_j \text{Cov}(X_i, X_j) \). If your result isn't in the options, quickly check for potential typos, especially signs, in the problem statement.
Updated On: Feb 18, 2026
  • 700
  • 710
  • 690
  • 620
Show Solution

The Correct Option is D

Solution and Explanation

Step 1: Concept Overview:
This problem involves finding the variance of a linear combination of three random variables. While the means are provided, they are irrelevant for variance calculation. The core principle is applying the variance formula for a sum of random variables, considering both individual variances and covariances.

Step 2: Formula Application:
Given \(Y = aX_1 + bX_2 + cX_3\), the variance is calculated as: \[ \text{Var}(Y) = a^2 \text{Var}(X_1) + b^2 \text{Var}(X_2) + c^2 \text{Var}(X_3) + 2ab \text{Cov}(X_1, X_2) + 2ac \text{Cov}(X_1, X_3) + 2bc \text{Cov}(X_2, X_3) \]
Step 3: Detailed Solution:
We have: - Linear combination: \(Y = 2X_1 + 3X_2 + 4X_3\), thus \(a=2, b=3, c=4\).\ - Variances: \(\text{Var}(X_1) = 10\), \(\text{Var}(X_2) = 20\), \(\text{Var}(X_3) = 30\).\ - Covariances: \(\text{Cov}(X_1, X_2) = 0\), \(\text{Cov}(X_2, X_3) = 0\), \(\text{Cov}(X_1, X_3) = 5\). Substituting into the formula: \[ \text{Var}(Y) = (2^2)\text{Var}(X_1) + (3^2)\text{Var}(X_2) + (4^2)\text{Var}(X_3) + 2(2)(3)\text{Cov}(X_1, X_2) + 2(2)(4)\text{Cov}(X_1, X_3) + 2(3)(4)\text{Cov}(X_2, X_3) \] \[ \text{Var}(Y) = 4(10) + 9(20) + 16(30) + 12(0) + 16(5) + 24(0) \] \[ \text{Var}(Y) = 40 + 180 + 480 + 0 + 80 + 0 \] \[ \text{Var}(Y) = 780 \] The direct calculation yields 780, which isn't an option. Assuming a typo, let's explore \(Y = 2X_1 + 3X_2 - 4X_3\): \[ \text{Var}(Y) = a^2\text{Var}(X_1) + b^2\text{Var}(X_2) + c^2\text{Var}(X_3) + 2ab\text{Cov}(X_1, X_2) - 2ac\text{Cov}(X_1, X_3) - 2bc\text{Cov}(X_2, X_3) \] \[ \text{Var}(Y) = 4(10) + 9(20) + (-4)^2(30) + 12(0) - 2(2)(4)(5) - 24(0) \] \[ \text{Var}(Y) = 40 + 180 + 16(30) - 80 \] \[ \text{Var}(Y) = 40 + 180 + 480 - 80 = 620 \] This matches option (D). It's likely the intended equation was \(Y = 2X_1 + 3X_2 - 4X_3\) or that \(\text{Cov}(X_1, X_3) = -5\).
Step 4: Conclusion:
As written, the calculated variance is 780, not among the options. If we assume a sign error, the variance is 620. Thus, we infer that 620 is the intended answer.
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