Assignment05-2010 - Next use all 100 draws are your...

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AEB 6571 - Econometric Methods I Assignment 5 Charles B. Moss September 20, 2010 1. Generate a 100 × 10 sample of Uniform random variables in Excel. a. Use the sample of Uniform Random variables to generate a sample of binomial random variables based on 10 draws with a probability of 0.5. b. Using the same sample of random variables generate a sample of binomial random variables based on 10 draws with a probability of 0.75. 2. Compute the mean and variance of your first 75 draws. Are your em- pirical means and variances close to the theoretical mean and variance?
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Unformatted text preview: Next use all 100 draws, are your empirical means and variances closer to the theoretical moments? 3. Draw a histogram of each sample and compare the histogram with that of the normal distribution function for each sample. 4. Compute the empirical cumulative distribution function for each em-pirical draw and compare it with the cumulative probability density function for the normal distribution function. 1...
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