Consider again the situation of Exercise 4.72. It is required to find Var(eY ). Use Theorems 4.2 and 4.3 and define Z = eY . Thus, use the conditions of Exercise 4.73 to find Var(Z) = E(Z2

) − [E(Z)]2

.

Then do it not by using f(y), but rather by using the first-order Taylor series approximation to Var(eY ).

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