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10. (Chap4-in class) Let X1 and X2 be two random variables, with E(X1) = /1, E(X2) = /2, Var(X1) = 01 and Var(X2) = 02,

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10. (Chap4-in class) Let X1 and X2 be two random variables, with E(X1) = /1, E(X2) = /2, Var(X1) = 01 and Var(X2) = 02, and cov(X1, X2) = 012. Let a and b be constants, Let W = aX1 + bX + 2, verify that (a) E(W) = au1 + bug. (b) Var(W) = a20? + bo; + 2abo 12

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