Miller Chapt. 4 - End of chapter question 7

[eva maria]

Hi David,

I'm doing this exercise but I don't understand the output because there are intermediate data that I don't know where they come from. Can you help me please?
the data I'm indicating in yellow is a data that is given in the exercise or have you obtained it by clearing it?.
I don't get to get this value.

I'm doing this exercise and I don't understand the result because there are intermediate data that I don't know where they come from.
Can you help me please?
the data I'm indicating in yellow is a data that is given in the exercise or have you obtained it by clearing it?.
I don't get to get this value.

 

[eva maria]

Hello again, David,
I think there's a mistake in the term pointing out.
In section a we have said that the average was 0.5*(x2+x1) and in the resolution of the exercise we have put 0.5*(x2-x1).

Am I mistaken?

Many thanks

 

[David Harper CFA FRM]

Hi @eva maria in the uniform distribution, c = f(x); i.e., the height of the rectangle that visualizes the probability density function (pdf). The uniform is a rectangle that starts at b1 with immediate height equal to c = f(x) then is a horizontal line to b2. So it's area, which must equal 100% (because it is a probability so the total area under the "curve" although the uniform is not curvy!) is given by height * width = fx * (b2-b1) = c * (b2-b1). Therefore, 100% = c*(b2-b1) --> 1.0 = c*(b2 - b1) such that c = 1/(b2-b1). With respect to your highlighted snippet, we must have made a mistake, apologies. I don't know if we generated that or if it was a previous edition's correction (there have been errors), but Miller's current solution reflects the correct step, please see below. Sorry for the confusion (@Nicole Seaman please tag Miller EOC Q&Q 4.7 for non-urgent/batch correction; i.e., this will rarely be noticed). Thanks!

 

[eva maria]

Hi @David Harper CFA FRM ,

Below I will now show you the calculations that I have made, modifying what you was told me in the previous question. As you can see, I can't achieve the same result as you.
Could you help me?

Many thanks

 

[David Harper CFA FRM]

Hi @eva maria FYI, This is not my question, it is Miller's end of chapter Q&A (we include author EOC questions to be as helpful as possible). Although GARP assigned the chapter, and therefore the EOC questions are relevant, I wouldn't write a question like this ....

If I get a chance today, I'll try to debug, but I'm already working all weekend (on next week's content and support) so I may not be able to personally help with all/some of the author EOC questions, because it's already very time-consuming just to support my own questions (i was most of yesterday doing that!). In that vein, I would be grateful if you could address forum generally for help (i.e., other visitors and subscribers). That's just FYI, I'll come back if i can, thanks!