Suppose that X and Y have a joint distribution with means X and Y, standard deviations X and Y, and correlation Show that if E(Y X) is a linear function of X, then E(Y X) Y Y X (X X) ...

It was shown in Exercise 12 ...

Suppose that X and Y have a joint distribution with means X and Y, standard deviations X

Question:

Suppose that X and Y have a joint with means μX and μY, standard deviations σX and σY, and correlation ρ. Show that if E(Y|X) is a linear function of X, then
E(Y|X) = μY+ ρσY/σX (X − μX).
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...