3. The following table gives home values of 10 homes in three neighborhoods: Neighborhood A $800,000 $600,000 Neighborhood B $1,600,000 $1,200,000 $800,000 $1,200,000 Neighborhood C $1,000,000 $400,000 $500,000 $500,000

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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3. The following table gives home values of 10 homes in three neighborhoods:
Neighborhood A
$800,000
$600,000
Neighborhood B
$1,600,000
$1,200,000
$800,000
$1,200,000
Neighborhood C
$1,000,000
$400,000
$500,000
$500,000
Calculate the mean (expected) home value for all homes in all regions. Prove that the law of iterated
expectations holds in this case, treating price as Y and the neighborhood as X. Use correct notation.
Transcribed Image Text:3. The following table gives home values of 10 homes in three neighborhoods: Neighborhood A $800,000 $600,000 Neighborhood B $1,600,000 $1,200,000 $800,000 $1,200,000 Neighborhood C $1,000,000 $400,000 $500,000 $500,000 Calculate the mean (expected) home value for all homes in all regions. Prove that the law of iterated expectations holds in this case, treating price as Y and the neighborhood as X. Use correct notation.
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