Total variance Revenue variance Enrollment variance Rate variance Cost variance Volume variance

Q) Use LOTUS to show that for and any function ,
( ) ( )
This is called the Stein-Chen identity for the Poisson.
Ans:
R.H.S =
= ∑ [ From LOTUS we know,
( ) ∑ ,
where the sum is taken over all
possible values of X ]
= ∑ ...