Question: Suppose that X and Y are random variables such that E(Y|X) = aX + b. Assuming that Cov(X, Y) exists and that 0 < Var(X)

Suppose that X and Y are random variables such that E(Y|X) = aX + b. Assuming that Cov(X, Y) exists and that 0 < Var(X) < ∞, determine expressions for a and b in terms of E(X), E(Y), Var(X), and Cov(X, Y).

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