Solution

ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2011/p/p3/a/solution

The best polynomial minimizes the weighted squared error among all polynomials of degree at most :
The given inner product is positive definite on continuous functions despite the weight vanishing at zero: a continuous nonzero function is nonzero on an interval containing nonzero points, so its weighted square integral is strictly positive.

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