In Example 10.5 we used linearization to estimate V ().We can alternatively use the random group method

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In Example 10.5 we used linearization to estimate V (ˆθ).We can alternatively use the random group method to estimate the variance of ˆθ . Calculate Ṕ11 Ṕ 22 − Ṕ 12 Ṕ 21 for each of the seven random groups, as discussed in Example 9.4, and find the variance of the seven nearly independent estimates of θ. Form the Wald statistic based on your estimated variance. Since the estimate of the variance from the random groups method has only six df, the test statistic should be compared to an F1,6 distribution rather than to a χ2 1 distribution. Do you reach the same conclusion as in Example 10.5? Discuss.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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