Linear Transformations of a Random Variable

Definition

Linear transformations of a random variable involve multiplying or adding constants to the original random variable. This changes the scale and location of the distribution, but does not change its shape.

Related terms

Expected Value: The expected value is the average value that we would expect to get if we repeated an experiment many times. It represents the center of mass for a probability distribution.

Variance: Variance measures how spread out the values of a random variable are from their mean. It quantifies the variability or dispersion in the data.

Covariance: Covariance measures how two random variables vary together. It indicates whether they have a positive or negative relationship, or if they are independent.