Question: Consider again the situation of Exercise 4.72. It is required to find Var(e ). Use Theorems 4.2 and 4.3 2 Y Y Y Y and

Consider again the situation of Exercise 4.72. It is required to find Var(e ). Use Theorems 4.2 and 4.3 2

Y Y

and define Z = e . Thus, use the conditions of Exercise 4.73 to find Then do it not by using f(y), but rather by using the first-order Taylor series approximation to Var(e ). Comment!

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