Question: Suppose that E[D]=0 and E[Y| [ D] |] =D^(2) (a) Show that mean of Y is the variance of D . (b) Are Y

Suppose that

E[D]=0

and

E[Y|

[

D]

|]

=D^(2)

\ (a) Show that mean of

Y

is the variance of

D

.\ (b) Are

Y

and

D

dependent? Why?\ (c) Are

Y

and

D

correlated? Why?

Suppose that E[D]=0 and E[Y|[ D]|] =D^(2)\ (a) Show that mean

Suppose that E[D]=0 and E[YD]=D2 (a) Show that mean of Y is the variance of D. (b) Are Y and D dependent? Why? (c) Are Y and D correlated? Why

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