Variance of an indicator
An event occurs with probability . What is the variance of its indicator (1 if it occurs, else 0)?
Show hints (2)+
- For a 0/1 variable, E[X^2] = E[X] = p.
- Var = p(1-p).
Answer
Reveal answer →Final answer
0.25
Want the full step-by-step worked solution? It's part of Premium — along with a worked solution for every question in the bank.