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Unformatted text preview: x ? (d) What is the variance of the rate of spread when wind speed is x ? (e) Suppose W is a random variable with mean and variance 2 W . What is the (un-conditional) variance of the rate of spread? Also, nd the unconditional expected rate of spread. (f) How would you change the model if rate of spread is linearly related to the square root of wind speed? 2. Write out a linear regression model which could be used to predict the prime interest rate P from the core ination rate C ....
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- Fall '10