Gaussian random vector covariance matrix calculation in two different ways

126 Views Asked by At

I'm trying to wrap my head around Gaussian random vectors, in particular their covariance matrices. I've seen two different definitions of a covariance matrix depending on whether you are calculating the matrix from observed results or from a mathematical model. If I let a Gaussian random vector be defined as such. $$X = \mu + AZ$$ Where $\mu \in \mathbb{R}^n$, $A \in M_{n,k}$ and $Z = \{Z_0, ..., Z_k\}^T$ where $Z_i$ are independent and identically distributed standard normal random variables.

I've seen that one definition of the covariance matrix $\Sigma$ is $AA^T$. And another is $\Sigma_{i,j} = Cov[X_i, X_j] = E[(X_i-\mu_i)(X_j-\mu_j)]$. I attempted to check that these are equivalent with an example. $$X = \begin{align}\begin{bmatrix}1 \\ 2\end{bmatrix} + \begin{bmatrix}1 & 2 \\ 3 & 4\end{bmatrix}\begin{bmatrix}Z_0 \\ Z_1\end{bmatrix}\end{align}$$ I found, $$\Sigma = AA^T = \begin{align}\begin{bmatrix}5 & 11 \\ 11 & 25\end{bmatrix}\end{align}$$ And, $$\Sigma_{0,1} = E[(X_0- \mu_0)(X_1 - \mu_1)] = E[(Z_0 + 2Z_1)(3Z_0+4Z_1)] = E[3Z_0^2 + 10Z_0Z_1 + 8Z_1^2]$$ Now I have no inclination as to if this makes any sense or why it might be true but I saw that if I let $E[Z_iZ_j] = \delta_{i,j}$ (Kronecker delta). Then we successfully find $\Sigma_{0,1} = 11$.

Could someone please provide more clarity on what is actually happening here?