1. The problem is to express $\frac{x^{-2}}{y}$ in a simplified form. 2. Recall the rule for negative exponents: $x^{-n} = \frac{1}{x^n}$. 3. Apply this rule to $x^{-2}$: $$x^{-2} = \frac{1}{x^2}$$ 4. Substitute this back into the original expression: $$\frac{x^{-2}}{y} = \frac{\frac{1}{x^2}}{y}$$ 5. Dividing by $y$ is the same as multiplying by $\frac{1}{y}$: $$\frac{\frac{1}{x^2}}{y} = \frac{1}{x^2} \times \frac{1}{y} = \frac{1}{x^2 y}$$ 6. Therefore, the simplified form of $\frac{x^{-2}}{y}$ is: $$\boxed{\frac{1}{x^2 y}}$$