Question: Show that for the binomial model of Section 1, r() = log(1 + e) and that r() = p and r() = p(1 p).

Show that for the binomial model of Section 1, r(θ) =

log(1 + eθ) and that ˙r(θ) = p and ¨r(θ) = p(1 − p).

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