If time and computing facilities are available, consider

Chapter 7, Problem 1E

(choose chapter or problem)

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):

2         2         2         2         2         2         2         2         2         2

2         2         3         3         3         3         4         4         4         5        

5         5         5        6         6         6         6         8         8         9

15         17         22         23         24         24         25         27         32         43

To illustrate bootstrapping, take resamples of size \(n=40\) as many as \(N=100\) times, computing the value of \(T=(\bar{X}-5) /(S / \sqrt{40})\) each time. Here the value 5 is the median of the original sample. Construct a histogram of the bootstrapped values of \(T\).

Equation Transcription:

 

Text Transcription:

n=40  

N=100  

T=(X-5)/(S/sqrt 40)

T