We calculate the correlated part of the nuclear matter spectral functi
on at various densities employing correlated basis function theory. Th
e correlated part of the spectral function for finite nuclei is obtain
ed from the nuclear matter results by using local density approximatio
n, whereas the mean-field part is extracted from (e, e'p) scattering d
ata. The resulting P(k, E) is used to study inclusive electron scatter
ing at large q; the final state interaction effects are also treated i
n local density approximation.