Determine which of your estimators r = ˆrMLE and r = ˆrLS has greater bias?
In this question you will explore whether ˆrLS and ˆrMLE are biased. (a) In Ror a programming language of your choice, simulate time series data, {R0,R1,…,Rn}, using the model Rt+1 = ztrRte1−Rt/k, (4) with r = 1.3, k = 100, σ = 0.1, starting at R0 = 5 and n = 50, where zt is […]