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

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Statistical Sampling To Auditing Questions!