How to Solve Multivariate Probability — Multivariate — conditional expectation / variance Questions on Exam P

Exam P Topic: Multivariate Probability — Multivariate — conditional expectation / variance Verified Procedural Question
Sample Practice Problem ID: #6WF04
Let \(X\) be exponential with rate \(2\). Independently, let \(Z\) be exponential with rate \(4\), and define \(Y=X+Z\). Calculate \(\operatorname{Var}(\operatorname{E}[Y\mid X])\).
(A)0.1667
(B)0.2500
(C)0.1250
(D)0.0625
(E)0.1875
📖 Worked Solution & Strategy
The conditional representation separates \(Y\) into the observed value of \(X\) and an independent exponential gap. Conditional expectation and variance therefore isolate exactly which source of randomness remains after \(X\) is known. Because \(Z\) is independent of \(X\), conditional expectation gives \(\operatorname{E}[Y\mid X]=X+\operatorname{E}[Z\mid X]=X+\operatorname{E}[Z]=X+1/4\). Adding the constant \(1/4\) does not alter variance, so \(\operatorname{Var}(\operatorname{E}[Y\mid X])=\operatorname{Var}(X)=1/2^2=\frac{1}{4}\).
Therefore, the result is \(\frac{1}{4}\approx 0.2500\), so the correct answer is option (B).

Final Answer: Option (B)

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