PROBLEM 1E

If time and computing facilities are available, consider the following 40 losses, due to wind-related catastrophes, that were recorded to the nearest $1 million (these data include only those losses of $2 million or more, and, for convenience, they have been ordered and recorded in millions of dollars):

To illustrate bootstrapping, take resamples of size n = 40 as many as N = 100 times, computing the value of each time. Here the value 5 is the median of the original sample. Construct a histogram of the bootstrapped values of T.

The notebook pages are the notes and the code that we went through on the ﬁrst day. The pictures of the...