Suppose that (Y_{1}, ldots, Y_{n}) are i.i.d. random variables with a (N(1,4)) distribution. Sketch the probability density

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Suppose that \(Y_{1}, \ldots, Y_{n}\) are i.i.d. random variables with a \(N(1,4)\) distribution. Sketch the probability density of \(\bar{Y}\) when \(n=2\). Repeat this for \(n=10\) and \(n=100\). In words, describe how the densities differ. What is the relationship between your answer and the law of large numbers?

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Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

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