Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 - Data Generation Use a linear congruential generator with parameters a = 5, c = 9, m = 128 and Zo = 71
Question 1 - Data Generation Use a linear congruential generator with parameters a = 5, c = 9, m = 128 and Zo = 71 to generate a series of 30 numbers uniformly distributed in the interval [0,1]. a) Compute and compare the mean and variance of these numbers with those obtained from the expected theoretical Uniform(0,1) distribution (continuous uniform). Explain any differences. b) The interest rate for a capital project is unknown. An accountant has estimated that the minimum interest rate will be between 2% and 5% within the next year. The accountant believes that any interest rate in this range is equally likely. Using the uniform random numbers from part a) generate 30 independent interest rate values for this situation. Question 1 - Data Generation Use a linear congruential generator with parameters a = 5, c = 9, m = 128 and Zo = 71 to generate a series of 30 numbers uniformly distributed in the interval [0,1]. a) Compute and compare the mean and variance of these numbers with those obtained from the expected theoretical Uniform(0,1) distribution (continuous uniform). Explain any differences. b) The interest rate for a capital project is unknown. An accountant has estimated that the minimum interest rate will be between 2% and 5% within the next year. The accountant believes that any interest rate in this range is equally likely. Using the uniform random numbers from part a) generate 30 independent interest rate values for this situation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started