The Textbook Formula for the Variance of the Discrete Random

question 18

Essay

The textbook formula for the variance of the discrete random variable Y is given as Another commonly used formulation is .
Prove that the two formulas are the same.

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Definitions:

Nominal GDP

The gross domestic product measured in current prices without adjusting for inflation.

Real GDP

The calculation of a nation's economic production after accounting for changes in prices, such as inflation or deflation, which shows the actual value of the products and services generated.

Nominal GDP

The gross domestic product measured in current prices, without adjusting for inflation, representing the value of all goods and services produced within a country's borders in a specific time period.

Real GDP

The measure of a nation's gross domestic product adjusted for inflation, showing the value of goods and services produced in real terms.