What is the variance of the random variable kY expressed as?
Explanation
When a random variable Y is scaled by a constant k, its variance is multiplied by the square of that constant. Therefore, Var(kY) = k² * Var(Y).
When a random variable Y is scaled by a constant k, its variance is multiplied by the square of that constant. Therefore, Var(kY) = k² * Var(Y).