### E1.4. Expectation and Variance of a Random Variable (Econometrics Math)

This video defines expectation and variance of a random variable and gives an example of how to compute expectation and variance. Throughout the video, I also demonstrate important results in the application of probability to econometrics: (1) expectations are linear, (2) expectations of an indicator function, (3) variance of a linear function, and (4) computational formula for the variance. This video is part of my series of videos on an introduction to econometrics. This is part of the math review.

Length:
11:41