What I wished they taught me about Econometrics - An Introduction

6 Law of iterated expectations the discrete case

About this lesson
Lydia presents a clear, step-by-step proof of the Law of Iterated Expectations for discrete cases. Starting with algebraic definitions and assumptions, she demonstrates that E(Y) = E(E(Y|X)). A practical example using 10 individuals' education levels and outcomes illustrates this expectation equality. Lydia concludes by hinting at an upcoming video proving the continuous case. Subscribe to @AxiomTutoring for more comprehensive explanations.
Walkthrough

Follow the reasoning, step by step.

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