Use the results of Exercises 14 20 and 14 21 and the fact that E(B Euml ) Icirc sup2 and var(B Euml ) Iuml 2 Sxx to show that Y0 (A Euml B Euml x0) is a random variable having a normal distribution with zero mean and the variance Here Y0 has a normal distribution with the mean Icirc plusmn Icirc su...

EY Bx a Bx Bx 0 varYABxo var x v ...

Use the results of Exercises 14.20 and 14.21 and the fact that E(BË) = Î² and var(BË)

Question:

Use the results of Exercises 14.20 and 14.21 and the fact that E(BË†) = Î² and var(BË†) = Ïƒ2/ Sxx to show that Y0 €“ (AË† + BË†x0) is a random variable having a normal with zero mean and the variance

Here Y0 has a normal distribution with the mean Î± + Î²x0 and the variance Ïƒ2; that is, Y0 is a future observation of Y corresponding to x = x0. Also, use the first part of Theorem 14.3 as well as the fact that Y0 €“ (AË† + BË†x0)and nˆ‘Ë†2/Ïƒ2 are independent to show that

Use the results of Exercises 14.20 and 14.21 and the

Is a value of a random variable having the t distribution with n €“ 2 degrees of freedom.

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...