1. Var(X+Y+Z)

What is the formula for the variance of 3 dependent variables?

For 2 dependent variables, the formula is

Var(X)+Var(Y)+2*Cov(X,Y)

What is Var(X+Y+Z) if the variables are dependent? Please do not give me the general formula for n number of variables. I've seen it but I don't understand it. If I see an example with 3 variables then I think I can figure it out. Thanks.

2. Originally Posted by shrek
What is the formula for the variance of 3 dependent variables?

For 2 dependent variables, the formula is

Var(X)+Var(Y)+2*Cov(X,Y)

What is Var(X+Y+Z) if the variables are dependent? Please go not give me the general formula for n number of variables. I've seen it but I don't understand it. If I see an example with 3 variables then I think I can figure it out. Thanks.

Var (X + Y + Z) = Var(X) + Var(Y) + Var(Z) + 2Cov(X,Y) + 2Cov(X,Z) + 2Cov(Y,Z).

I can write out a short proof if you would like.

3. Originally Posted by Dragan

Var (X + Y + Z) = Var(X) + Var(Y) + Var(Z) + 2Cov(X,Y) + 2Cov(X,Z) + 2Cov(Y,Z).

I can write out a short proof if you would like.
thanks! no proof necessary. how about Var(X+Y-Z)? is this right?

Var (X + Y - Z) = Var(X) + Var(Y) - Var(Z) + 2Cov(X,Y) - 2Cov(X,Z) - 2Cov(Y,Z)

4. Originally Posted by shrek
thanks! no proof necessary. how about Var(X+Y-Z)? is this right?

Var (X + Y - Z) = Var(X) + Var(Y) - Var(Z) + 2Cov(X,Y) - 2Cov(X,Z) - 2Cov(Y,Z)

Well, you're always going to sum the variances so we have,

Var (X + Y - Z) = Var(X) + Var(Y) + Var(Z) + 2Cov(X,Y) - 2Cov(X,Z) - 2Cov(Y,Z)

5. Re: Var(X+Y+Z)

Originally Posted by Dragan

Var (X + Y + Z) = Var(X) + Var(Y) + Var(Z) + 2Cov(X,Y) + 2Cov(X,Z) + 2Cov(Y,Z).

I can write out a short proof if you would like.
Hi,
Can you please write out the proof?

7. Re: Var(X+Y+Z)

hi can you help me with my statistics paper?

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