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This might be a very simple question. But I was going through this lecture where it is mentioned that

If I have n-1 neighbors and there is a probability p of having an edge with a neighbor. Then the average degree of any node is given by (n-1)*p. This is fine I get it

But how come the variance of degree is (n-1)p(1-p). I didn't get how this variance was derived.

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    $\begingroup$ There is most likely an assumption that the events $A_i = \text{"I have an edge with neighbor}~i"$ are $n-1$ mutually independent events, making the degree a binomial random variable with parameters $(n-1,p)$. The result then follows from the properties of binomial random variables. If you want an explicit derivation, use the result that $$\text{var}(X) = E[X(X-1)] + E[X] - (E[X])^2$$ since $E[X(X-1)]$ is easier to compute for a binomial random variable than the $E[X^2]$ needed for applying the standard result $$\text{var}(X) = E[X^2] - (E[X])^2.$$ $\endgroup$ – Dilip Sarwate Dec 21 '12 at 16:56
  • $\begingroup$ what is E[X(X-1)]] for a binomial distribution how is it calculated? $\endgroup$ – user34790 Dec 21 '12 at 20:58
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    $\begingroup$ $$E[X(X-1)]=\sum_{i=0}^{n-1}i(i-1)\binom{n-1}{i}p^i(1-p)^{n-1-i} = \sum_{i=2}^{n-1}i(i-1)\binom{n-1}{i}p^i(1-p)^{n-1-i}$$ since the first two terms of the middle sum are $0$. Now write $\binom{n-1}{i}=\frac{(n-1)!}{i!(n-1-i)!}$, cancel $i(i-1)$ and simplify. $\endgroup$ – Dilip Sarwate Dec 21 '12 at 22:04
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A very easy way to calculate the variance is to see that it is a sum of independent Bernoulli random variables, one for each neighbor. The variance of a $\text{Bernoulli}(p)$ random variable is $p(1-p)$. The variance of a sum of independent random variables is the sum of the variances.

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