Task 1: Kurtosis

samedi 4 octobre 2014

In my write-up for task 1, I was going to mention that the Regime-Switching Lognormal Model is a more conservative model because it displays a better ability to depict a fat tail distribution; however, when I measure kurtosis, I get 2.16 for the LN model versus 1.32 for the RSLN model. Wouldn't this indicate that the LN model has a fatter tail?





Task 1: Kurtosis

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