2 posts • Page **1** of **1**

I see that in Ex 9.12, you calculate the standard error to be \sqrt{sample variance/N-1 } - however on pg 91 you define the standard error to be the \sqrt{variance/N}. Is this just because we have calculated the (biased) sample variance V(X)=7.38 here rather than the population variance? So presumably we have something like E(\sqrt{sample variance/N-1 }) = \sqrt{population variance/N}?

- quee0849
**Posts:**6**Joined:**Tue Apr 01, 2014 3:01 pm**Location:**London, UK

generally we have a sample estimate so we should proceed accordingly. It's really not worth getting worked up about in this context.

- mj
- Site Admin
**Posts:**1380**Joined:**Fri Jul 27, 2007 7:21 am

2 posts • Page **1** of **1**

Return to The concepts and practice of mathematical finance

Users browsing this forum: No registered users and 1 guest