Minimizing Variance of a Linear Combination
Let X and Y be independent random variables with , , , and . A new random variable is defined by the linear combination , where and are constants. If and the variance of Z is minimized, what are the values of and ?
A
a = 375/289, b = 4000/7225
B
a = 2, b = -1/2
C
a = 1, b = 1/2
D
a = 1, b = 1
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