ANSWER

Step-by-step explanation
We want to reduce the rational expression to the lowest terms:

First, let us factor the denominator of the expression:

Now, we can test if the factors in the denominator are also the factors in the numerator.
To do this for (y - 2), substitute y = 2 in the numerator. If it is equal to 0, then, it is a factor:

Since it is equal to 0, (y - 2) is a factor. Now, let us divide the numerator by (y -2):
We have simplified the numerator and now, we can factorize by the difference of two squares:

Therefore, the simplified expression is:

Simplify further by dividing common terms. The expression becomes:

That is the rational expression in the lowest terms.
To find the variable restrictions, set the denominator of the original expression to 0 and solve for y:

Those are the variable restrictions for the original expression.