Question: Generate a reasonably large random sample from the 2 1 distribution and look at histograms of the implied values of t = log( t) 2

Generate a reasonably large random sample from the 2 1 distribution and look at histograms of the implied values of t = log( t) 2 where 2

t 1 as in the SV model. Explore the shape of this distribution using quantile-quantile plots against the standard normal distribution to generate insight into how the distribution of t di ers from normal, especially in the tails. Describe the di erences.

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