Problem on independent gibbs samples
Solve the following problem:
Reproduce Figure for two independent Gibbs samples of size 105, and evaluate the impact of the lag G on the shape of those graphs. (Try G = 2, 5, 10, 100, 1000.)
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This is a sequential graph in that each dot is based on the sample of ß(t)'s produced at time T and then thinned by a lag of G = 10 and separated.
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McGregor requires a 12 percent return on its investments. What is the expected NPV of the diet scotch?
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Evaluate the impact of the lag G on the shape of those graphs. (Try G = 2, 5, 10, 100, 1000.)
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What is the NPV break-even level of sales assuming a tax rate of 35 percent, a 10-year project life, and a discount rate of 12 percent?
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