For random variables x and y we wish to use y to estimate x, Basic Statistics

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For random variables x and y we wish to use y to estimate x

For random variables X and Y, we wish to use Y to estimate X. However, our estimate must be of the form = aY

(a) Find a∗, the value of a that minimizes the mean square error e = E[(X - aY)²]

(b) For a = a∗, what is the minimum mean square error e∗?

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Basic Statistics: For random variables x and y we wish to use y to estimate x

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