Unformatted text preview: , 1]. (b) Calculate the variance of the uniform distribution on [0 , 1]. (c) The function RAND in excel draws one observation from the uniform distribution on [0 , 1]. Create 500 observations from the uniform distribution in this way. (Note: You don’t have to type RAND 500 times. Just do it once, then choose the cell with the entry and move the mouse to the bottom right corner. The cursor should change to a thinner cross. Click and drag down 500 cells. This should copy down the RAND function to all the cells below). Find the average for the ﬁrst 10 observations, for the ﬁrst 100 and for the ﬁrst 500. (d) Find the variance for the ﬁrst 10 observations, the ﬁrst 100 and the ﬁrst 500. (e) How do your answers in (c) and (d) compare to your answers in (a) and (b)? Why? 4. 420 (page 133) and 422 (page 134) 1...
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 Spring '10
 M.Abajian
 Econometrics, Normal Distribution, Probability theory, probability density function, Cumulative distribution function, CDF

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