Category Statistics

Differential Equations

Differential Equations Homework 1 Differential Equations/Linear Algebra, Fall 2023 Due Friday, September 1 at 11 pm Submission is online. See Canvas for submission instructions. Please show your work and justify all answers. Evaluate the following linear combinations: Solve the following…

Decision and Risk Exercise 9

Decision and Risk Exercise 9 Question 1 Let Xt denote a daily log-return of a particular stock at time t. The historical record of log-returns over the last 5 days is as follows: X1 = −2.2, X2 = 2.1, X3…

Decision and Risk Exercise 6 & 7

Decision and Risk Exercise 6 & 7 Decision and Risk – Exercise 6 Question 1  Consider a model for log-returns of a particular stock: Yt = µ + ut ut = σtεt           εt ∼ N (0, 1) Write down the…

Decision and Risk – Exercise 3

Decision and Risk – Exercise 3 Question 1 Consider a random variable X ∼ N (µ, 1). It is desired to estimate the unknown parameter µ under loss function L(µ, a) = (µ − a)2.  Let the decision rule be…

Decision and Risk Exercise 1

Decision and Risk Exercise 1 Bayes Theorem Question 1 You are planning a vacation in Italy.  Before packing, you hear that there might be an earthquake the day you arrive. After consulting Google, you learn that in recent years there…