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View Full Version : Concept of conditional variance



thtang
February 20th 2008, 01:18 AM
I would like to confirm if conditional expectation and conditional variance is similiar to conditional probability.

conditional probability example

P(A|B) = P(A and B) / P(B)

then is it true that

E[A|B] = E[A and B] / E[B]

and

Var[A|B] = Var[A and B] / Var[B] or E[A^2 | B] - (E[A|B])^2

?
Thanks

lee_onion
February 22nd 2008, 09:42 AM
I think E(A|B) = E(A and B) / P(B)
and Var(A|B) = V(A and B) / P(B) = E(A^2|B) - (E(A|B))^2;