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Question: 7 15 ptsl let y a bx u where...

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(7) 15 ptsl Let Y - a +bX +U, where X and U d b are are randon variables and a an constants. Assume that E[U|X] 0 and Var u|X] - X2. (a) Is Y a random variable? Why? (b) Is U independent of X? Why? (c) Show that Eu0 and Var[uEX2] (d) Show that E[Y|X- a bX, and that E[Y abEX]. (e) Show that VarlyX] = X2, and that Varly-p?Var(X) + EX2].

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