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Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
Edition 3ISBN: 978-9352863501Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
Edition 3ISBN: 978-9352863501 Exercise 6
Consider three random variables X, Y, and Z. Suppose that Y takes on k values Y 1 ,…, y k that X takes on l values x 1;..., x l , and that Z takes on m values Z 1 ,...,z m. The joint probability distribution of X, Y , Z is Pr( X = x , Y = y, Z = z ), and the conditional probability distribution of Y given X and Z is
![Consider three random variables X, Y, and Z. Suppose that Y takes on k values Y 1 ,…, y k that X takes on l values x 1;..., x l , and that Z takes on m values Z 1 ,...,z m. The joint probability distribution of X, Y , Z is Pr( X = x , Y = y, Z = z ), and the conditional probability distribution of Y given X and Z is a. Explain how the marginal probability that Y = y can be calculated from the joint probability distribution. b. Show that E ( Y ) = E [ E ( Y | X, Z)].](https://d2lvgg3v3hfg70.cloudfront.net/SM2685/11eb817c_7715_14a8_84e6_2d0b22dc44ab_SM2685_00.jpg)
a. Explain how the marginal probability that Y = y can be calculated from the joint probability distribution.
b. Show that E ( Y ) = E [ E ( Y | X, Z)].
a. Explain how the marginal probability that Y = y can be calculated from the joint probability distribution.
b. Show that E ( Y ) = E [ E ( Y | X, Z)].
Explanation
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Introduction to Econometrics 3rd Edition by James Stock, Mark Watson
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