Suppose that Y₁ , … ,Y n are i.i.d. random variables with the probability distribution given in Figure 2.10a. You want to calculate Pr( 11eb9b5b_3ca2_70f8_bf3e_0f396aa294f1_SM2686_00 0.1). Would it be reasonable to use the normal approximation if n = 5 What about n = 25 or n = 100 Explain. 11eb9b5b_3ca2_70f9_bf3e_d1eec651116a_SM2686_00

Introduction to Econometrics 3rd Edition by James Stock, James Stock

Edition 3ISBN: 978-9352863501

Edition 3ISBN: 978-9352863501

Exercise 3

Suppose that Y₁ , … ,Y n are i.i.d. random variables with the probability distribution given in Figure 2.10a. You want to calculate Pr(

0.1). Would it be reasonable to use the normal approximation if n = 5 What about n = 25 or n = 100 Explain.

Explanation

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We are told that are i.i.d. random vari...