Q2. let X1, X2, , Xn be i.i.d. with a Cauchy density f(x0) 1 [1 +...

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Q2. let X1, X2, , Xn be i.i.d. with a Cauchy density f(x0) 1 π[1 + (x −0)²]' 7, ER, 0 > 0 We want to find the 100(1-a)% credible set for 0. Draw n (your choice) observations from this distribution with a chosen . Based on these observations, find 95% and 99% HPD credible sets for 0. Do this for three (or more) different values of n (small, moderately large, large/very large). Also describe your algorithm for finding the HPD credible sets. Q2. let X1, X2, , Xn be i.i.d. with a Cauchy density f(x0) 1 π[1 + (x −0)²]' 7, ER, 0 > 0 We want to find the 100(1-a)% credible set for 0. Draw n (your choice) observations from this distribution with a chosen . Based on these observations, find 95% and 99% HPD credible sets for 0. Do this for three (or more) different values of n (small, moderately large, large/very large). Also describe your algorithm for finding the HPD credible sets.

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