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Old 07-29-2012, 10:40 AM
eatingsandwich eatingsandwich is offline
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Join Date: Jul 2012
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Default Using the TI-30XS to find B

In the SOA samples, it gives instructions on how to find B using a calculator table. 2 questions:

Why do we put in the undiscounted payoffs? Aren't you basing your estimate on the price...which would be the discounted payoffs?

Does anyone else consistently get the calculator's "a" to equal .844? I've entered the 6 numbers exactly as they appear below but I'm not getting the same 1.139 output for "a".

Spoiler:
We can find the value of β easily and efficiently using the T1-30XS Multiview calculator.
We first clear the data by pressing [data] [data] ↓ ↓ ↓ until we see Clear ALL, then press [enter].

Then, fill out the table as follows:
L1: 1.97, 2,37, 0
L2: 1.93, 1.85, 0

Then, press:
[2nd] [data] 2 (to select 2-Var Stats)
Select L1 for y-data and press [enter].
Select L2 as x-data and press [enter].
Select CALC and then [enter].
Scroll down until you see a = 1.139897677
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Old 07-29-2012, 11:03 AM
starbuck7290 starbuck7290 is offline
 
Join Date: May 2007
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try to switch the 2 columns
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