Please help me show this
Hiii, i need help with this :sad::sad:. I have this function u(w) = 10w - 0,001w2
And i need to show that for the stochastic variable that:
E [u(w)] = 10µw − 0.001µw2 - 0.001σw2
µw = E [W]
σw2 = var(W)
It's the mean of a discrete random variable W, I'm not sure how they get to that result .
Hiii, i need help with this :sad::sad:. I have this function u(w) = 10w - 0,001w2
And i need to show that for the stochastic variable that:
E [u(w)] = 10µw − 0.001µw2 - 0.001σw2
µw = E [W]
σw2 = var(W)
It's the mean of a discrete random variable W, I'm not sure how they get to that result .
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