Hi all,
Two mistakes I made on my slides for section.
1. Jensen's inequality is E(g(X)) >= g(E(X)) for convex functions only.
The inequality switches signs for concave functions.
2. The coding error in my simulation problem is that I neglected to account
for the fact that I took out one marble in the first urn after the first
draw. When I do my final draw, the urn has one more marble in it than it
should. Think about how you would correct that.
--
Patrick Lam
Department of Government and Institute for Quantitative Social Science,
Harvard University
http://www.people.fas.harvard.edu/~plam