Math Problem Statement
How accurate is the approximation E[ln(Y)]≈θE[ln(Y)]≈θ for small values of θθ?
Solution
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Math Problem Analysis
Mathematical Concepts
Logarithmic Functions
Expected Value
Linear Operators
Small Parameter Approximations
Formulas
E[ln(Y^θ)] = θ * E[ln(Y)]
Theorems
Linearity of Expectation
Properties of Logarithms
Suitable Grade Level
Undergraduate/Graduate
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