you have a sample of t observations of yt the variable yt has an unknown mean u and 5154393

February 10, 2021/in Business Homework Help Online /by Joseph

You have a sample of T observations of yt. The variable yt has an unknown mean u and known precision h = 1. The prior p(u) is

You have a sample of T observations of yt. The variable yt has an unknown mean u and known precision h = 1. The prior p(u) is uniform over the real line, (-00,00). a) b) Derive the posterior density: p(uly). Develop a direct sampler to obtain draws us for i = 1, …, M from the posterior. Assume you do not have sufficient memory to save the draws of u'). Write down the steps (that is, the algorithm) you would include in your code to use the M draws ui) to estimate the probability that the mean is positive. [There is no need to write this in actual computer code.]

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