Consider two random variables X and Y. Suppose that Y takes on k values Y₁ ,..., y k and that X takes on l values X₁ ,..., x l. a. Show that 11eb9b5b_3cef_a69f_bf3e_0db9cad98a5b_SM2686_11 . b. Use your answer to (a) to verify Equation (2.19). c. Suppose that X and Y are independent. Show that xy = 0 and corr( X , Y ) = 0. 11eb9b5b_3cef_cdb0_bf3e_a313b72a8bdf_SM2686_11

Introduction to Econometrics 3rd Edition by James Stock, James Stock

Edition 3ISBN: 978-9352863501

Edition 3ISBN: 978-9352863501

Exercise 34

Consider two random variables X and Y. Suppose that Y takes on k values Y₁ ,..., y k and that X takes on l values X₁ ,..., x l.
a. Show that

.
b. Use your answer to (a) to verify Equation (2.19).
c. Suppose that X and Y are independent. Show that xy = 0 and corr( X , Y ) = 0.

Explanation

Verified

We are asked to consider two random vari...