3. Suppose that the conditional expectation of Y, given X = x, is linear in x, i.e.,
E(Y | X = x) = a + bx for some constants a and b. The aim of this exercise is to deter-
mine the values of a and b.
(a) Compute ?Y = E(Y) using the law of total expectation and
deduce that a and b satisfy a + b?X = ?Y.
(b) Compute E(XY) using the law of total expectation and deduce that a and b satisfy a?X + bE(X2) = E(XY).
Thank you and I always have a problem with this class as far as the book but have gotten that straight and I do appreciate what you do. Thank you
You guys have provided me the best Technical Writing service. And that is in such a short time. Thank you so much.
Everything was amazing. I loved it because references used Perfect. I will continue working with you. Thanks