Multivariate Normal Distribution

In probability theory and statistics, a multivariate normal distribution, also sometimes called a multivariate Gaussian distribution (in honor of Carl Friedrich Gauss, who was not the first to write about the normal distribution) is a specific probability density function.

General case

A random vector X = \cdots, X_N follows a multivariate normal distribution, also sometimes called a multivariate Gaussian distribution, if it satisfies the following equivalent conditions:
  • there is a vector \mu and a symmetric, positive semi-definite matrix \Gamma such that the characteristic function of X is
\phi_X(u) = \exp \left(
  i \mu^T u - \frac{1}{2} u^T \Gamma u 
\right) . The following is not quite equivalent to the conditions above, since it fails to allow for a singular matrix as the variance:
f_X(x_1, \cdots, x_N) = \frac
  {1}  {(2\pi)^{N/2} \left|\Sigma\right|^{1/2}} 
\exp \left(
  -\frac{1}{2}  ( x - \mu)^T \Sigma^{-1} (x - \mu) 
\right) where \left| \Sigma \right| is the determinant of \Sigma. Note how the equation above reduces to that of the univariate normal distribution if \Sigma is a scalar (i.e., a real number). The vector \mu in these conditions is the expected value of X and the matrix \Sigma = A A^T is the covariance matrix of the components X_i. It is important to realize that the covariance matrix must be allowed to be singular. That case arises frequently in statistics; for example, in the distribution of the vector of residuals in ordinary linear regression problems. Note also that the X_i are in general not independent; they can be seen as the result of applying the linear transformation A to a collection of independent Gaussian variables Z.

Bivariate case

In the 2-dimensional nonsingular case, the probability density function is
f(x,y) = \frac{1}{2 \pi \sigma_x \sigma_y \sqrt{1-\rho^2}} \exp \left(
  -\frac{1}{2 (1-\rho^2)}  \left(   \frac{x^2}{\sigma_x^2} +   \frac{y^2}{\sigma_y^2} -   \frac{2 \rho x y}{ (\sigma_x \sigma_y)}  \right) 
\right) where \rho is the correlation between X and Y.

Linear transformation

If Y = B X is a linear transformation of X where B is an m \times p matrix then Y has a multivariate normal distribution with expected value B \mu and variance B \Sigma B^T (i.e., Y ~ N \left(B \mu, B \Sigma B^T\right). Corollary: any subset of the X_i has a marginal distribution that is also multivariate normal. To see this consider the following example: to extract the subset (X_1, X_2, X_4)^T, use
B = \begin{bmatrix}
  1 & 0 & 0 & 0 & 0 & \ldots & 0 \\  0 & 1 & 0 & 0 & 0 & \ldots & 0 \\  0 & 0 & 0 & 1 & 0 & \ldots & 0 
\end{bmatrix} which extracts the desired elements directly.

Conditional distributions

Then if \mu and \Sigma are partitioned as follows
\mu = \begin{bmatrix}
  \mu_1 \\  \mu_2 
\end{bmatrix} \quad with sizes \begin{bmatrix} q \times 1 \\ N-q \times 1 \end{bmatrix}
\Sigma = \begin{bmatrix}
  \Sigma_{11} & \Sigma_{12} \\  \Sigma_{21} & \Sigma_{22} 
\end{bmatrix} \quad with sizes \begin{bmatrix} q \times q & q \times N-q \\ N-q \times q & N-q \times N-q \end{bmatrix} then the distribution of x_1 conditional on x_2=a is multivariate normal X_1|X_2=a ~ N(\bar{\mu}, \overline{\Sigma}) where
\bar{\mu} = \mu_1 + \Sigma_{12} \Sigma_{22}^{-1} \left(
  a - \mu_2 
\right) and covariance matrix
\overline{\Sigma} = \Sigma_{11} - \Sigma_{12} \Sigma_{22}^{-1} \Sigma_{21}. This matrix is the Schur complement of {\mathbf\Sigma_{22}} in {\mathbf\Sigma}. Note that knowing the value of x_2 to be a alters the variance; perhaps more surprisingly, the mean is shifted by \Sigma_{12} \Sigma_{22}^{-1} \left(a - \mu_2 \right); compare this with the situation of not knowing the value of a, in which case x_1 would have distribution N_q \left(\mu_1, \Sigma_{11} \right). The matrix \Sigma_{12} \Sigma_{22}^{-1} is known as the matrix of regression coefficients.

Estimation of parameters

The derivation of the maximum-likelihood estimator of the covariance matrix of a multivariate normal distribution is perhaps surprisingly subtle and elegant. See estimation of covariance matrices.

 

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