Suppose you have the following SLR model: Y = 75 + 12X + u Further suppose that the Zero Conditional Mean assumption holds and that the unconditional mean of X, denoted as x = 42. Calculate the unconditional mean of Y, denoted as y. Include a negative sign if necessary. Do NOT put a comma in answers. Hint: You will need to take advantage of the Law of Iterated Expectations to answer this question. The first step is to take a conditional expectation of something so that you can take advantage of the Law of Iterated Expectations.
Suppose you have the following SLR model: Y = 75 + 12X + u Further suppose that the Zero Conditional Mean assumption holds and that the unconditional mean of X, denoted as x = 42. Calculate the unconditional mean of Y, denoted as y. Include a negative sign if necessary. Do NOT put a comma in answers. Hint: You will need to take advantage of the Law of Iterated Expectations to answer this question. The first step is to take a conditional expectation of something so that you can take advantage of the Law of Iterated Expectations.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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