Suppose that X1 and X2 are independent random variables, and that each has the normal distribution with mean 0 and variance 2 Show that (X1 X2) (X1 X2) has the t distribution with one degree of freedom ...

It is known from Exercise 5 of Sec 83 that X 1 X 2 ...

Suppose that X1 and X2 are independent random variables, and that each has the normal distribution with

Question:

Suppose that X1 and X2 are independent random variables, and that each has the normal with mean 0 and variance σ2. Show that (X1 + X2)/(X1 − X2) has the t with one degree of freedom.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...