My intuitive understanding of additive variance:
Total variance = Var(X) + Var(Y)
where Var(X) = sum of (x_i - mean)^2 .
So, Var(X) and Var(Y) are made of the square areas around their mean. Total variance is the total area. Additive indicate X and Y are independent.
Co-variance will be the rectangles from this view.
Var(x+y) = Var(x) + Var(y) + 2Cor(X,Y)
I need to add a diagram to illustate this.
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