Consider the one-factor model given by Equation (11.1).

(a) Simulate a sample of 200 observations of 12-dimensional vectors as suming 2 j = 01+001 j j =1 12, H =1, and 2 =036.

(b) Implement the MCMC algorithm given in Section 11.2.2 to explore the posterior distribution.

(c) Analyze the simulated data with the MCMC algorithm using the following prior hyperparameters: n = 1, ns2= 1, nH = 1, nHs2 H =

1, n =22, and n s2=01.