Question: Let Z be a random variable such that E(Z) < oo. Show that (Z - b)2 is minimum when b = E(Z).

Let Z be a random variable such that E(Z) < oo. Show that (Z - b)2 is minimum when b = E(Z).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Statistics For Engineers And Scientists Questions!

Q:

Background: Your group has been ?hired? as interns at Valley Medical Center. Instead of acting as mere go-fors for the duration of the time at VMC, the VP of Finance has decided that it would be a...

Q:

Consider the Markov Chain, Xn, on the states i = 0, 1, 2, . . . with transition matrix given by pi,i1 = p i = 1, 2, . . . pi,i+1 = 1 p i = 0, 1, . . . p0,0 = p where 0

Q:

Stats 120B Homework 4: Due Thursday, Feb. 11 1. Let X and Y be two i.i.d random variables following N (3, 1). (a) Find the distribution of 2X + Y using any method you like. (b) Find the distribution...

Q:

6. In Kydland and Prescott's original RBC model, they made the assumption that investment does not produce capital immediately; i.e. the economy exhibited "time to build". Consider a...

Q:

Can someone help me answer this 2 tasks? These are the examples. I just don't know how to answer this myself. 1. Classify the following random variables as discrete or continuous. VARIABLES TYPES OF...

Q:

Your help will be highly appreciated 5. Let z be a random variable that takes on values in Z = (0, 1). Here, 1 denotes employment and 0 unemployment. Consider an arbitrary process of consumption...

Q:

uantitative Methods for MBAs Homework 4 Due September 13 in class This homework covers the basic concepts of probability, discrete and continuous random variables. Please answer using the space...

Q:

a Let z be a random variable with a standard normal distribution. Find the indicated probability. (Round your answer to four decimal places.) P(Z S-0.18) - Shade the corresponding area under the...

Q:

2. Pooled Testing. Blood testing is a critical method to screen for the presence of disease in a community. The natural way to administer the tests is to draw a blood sample from each person in the...

Q:

Please answer this question correctly. Show all steps and explain. Thank you. l. A book club has 49 membersnone of which was born on a leap year. Assuming that each member is equally likely to be...

Q:

Cash equivalents consist of all of the following except a) money-market investments. b) post-dated cheques. c) commercial paper. d) treasury bills.

Q:

Use the data in Exercise 21 of Section 7.1. a. Construct a scatterplot and, based on visual inspection, draw the best-fit line by eye. b. Briefly discuss the strength of the correlation. Estimate or...

Q:

Under which of the following circumstances would a nonprofit's net assets be presented as net assets with donor restrictions? Question 2 5 options: 1 ) Donors impose stipulations on the use of...

Q:

a. The United States Congress is well qualified to debate and set generally accepted accounting principles. Comment. b. Speculate on why these bills were directed to amend the Securities Exchange Act...