Lecture 5 a distribution is a collection of scores order from lowest to highest value on the horizontal (X)axis, and in terms of T-Test frequency on the vertical (Y) axis. A ormal distribution sometimes referred to as a bell curve has a distribution that forms the shape of a bell. All you need to know to plot the normal distribution is the mean and standard deviation of the data This lecture covers
Our task How to estimate and test discount factor model. Ep,=E(m (data 1, parameter)) 1. Bring an asset pricing model to data to estimate free parameters. For example, parameter,yinm=B(c+1/c)-y Or the b in m=b f 2. Evaluate the model, is it a good model or not? Is another model better?
