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Naked Statistics
Read the book Naked Statistics by Charles Wheelan. Answer the following questions in paragraph form (a paragraph is at least 5 sentences). Your paper should be between 1 and 2 pages long.
Discussion Questions
1. What was your favorite example he used in the book and why? (It has to be something other than the content for questions 2 and 3)
2. Explain briefly the problem with VaR (chapter 6) and how we can avoid this type of thing in the future?
3. In Chapter 9 the author uses an example where a professor thinks he has cheated. Does the professor's reasoning make sense? Explain.
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Show that for any sequence of U -statistics {Un, n ≥ m} generated as above by a random variable f (X1,..., Xm ) with f symmetric and EQ | f | ∞, {Un, Cn }n≥m is a reversed martingale.
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