After having estimated a regression model yi=?i+?2xi+ui, we wish to forecast the value of y? given a new observation x?. We can consider two types of predictions: forecasting the conditional mean of y?, or forecasting the actual value of y? What is true about the variances of these predictions?A.Var[conditional mean] > Var[actual value].B.Var[conditional mean] = Var[actual value].C. Var[conditional mean] < Var[actual value].D. Var[conditional mean] may be larger than Var[actual value] in some data sets and smaller in others.

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