Variance of a sum drawn without replacement

From a bag of ten tickets numbered 11 through 1010, you draw 3 tickets without replacement and add their numbers. What is the variance of that sum? Give a decimal to four places.

Show hints (2)+
  1. Draws without replacement are dependent - include the covariance.
  2. Var⁡(sum)=nσ2N−nN−1\operatorname{Var}(\text{sum})=n\sigma^2\frac{N-n}{N-1} with σ2=(102−1)/12\sigma^2=(10^2-1)/12.

Answer

Reveal answer →

19.25 (± 0.01)

Create a free account to see the full worked solution and track your progress.

Interview format: Options Trading, ETF Trading

Related questions