Define a conditional median of Y given X = x to be any median of the conditional

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Define a conditional median of Y given X = x to be any median of the conditional distribution of Y given X = x. Suppose that we will get to observe X and then we will need to predict Y. Suppose that we wish to choose our prediction d(X) so as to minimize mean absolute error, E(|Y − d(X)|). Prove that d(x) should be chosen to be a conditional median of Y given X = x. You can modify the proof of Theorem 4.7.3 to handle this case.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Probability And Statistics

ISBN: 9780321500465

4th Edition

Authors: Morris H. DeGroot, Mark J. Schervish

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