Suppose that X and Y are distributed bivariate normal with density given in Equation (17.38). a. Show
Question:
a. Show that the density of Y given X = x can be written as
where
b. Use the result in part (a) to show that
c. Use the result in part (b) to show that E(Y|X = x) = a + bx for suitably chosen constants a and b.
Transcribed Image Text:
frx=-0) = y-μK exp σγχνπ μΥιχ 2 σγχ
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Related Book For
Introduction to Econometrics
ISBN: 978-0133595420
3rd edition
Authors: James H. Stock, Mark W. Watson
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