Question: There is no point in using the Students t distribution in modeling speculative prices. One should adopt the Normal distribution at the outset because as
“There is no point in using the Student’s t distribution in modeling speculative prices.
One should adopt the Normal distribution at the outset because as the number of observations increases the Student’s t converges to the Normal.” Explain the fallacy in this argument.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
