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Math Help - Proof of theorem...

  1. #1
    Junior Member
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    Jun 2009
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    33

    Proof of theorem...

    It's the conditional Bayes theorem:

    Some conditions, blah blah

    Then \bar{E}[X|\mathcal{G}] = \frac{E[\Lambda X|\mathcal{G}]}{E[\Lambda|\mathcal{G}]}

    I'm fine with the bulk of the proof, it's just that it starts off by defining

    Y=\frac{E[\Lambda X|\mathcal{G}]}{E[\Lambda|\mathcal{G}]} if E[\Lambda|\mathcal{G}]>0 and Y = 0 otherwise

    Then it says we need to show Y = \bar{E}[X|\mathcal{G}]

    But I don't really see that Y=\frac{E[\Lambda X|\mathcal{G}]}{E[\Lambda|\mathcal{G}]}

    In fact if E[\Lambda|\mathcal{G}] = 0 Then the RHS of the formula is undefined! So.... what's going on here? :S

    Thanks for any help!
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  2. #2
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    up from page 3...
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