| 1 Use driven IFS to analyze the dollar-Deutschmark exchange rate. |
| (a) Plot the IFS driven by the time series using equal size bins. Do you get a backwards Z? | (b) Use equal weight bins. Does this remove the backwards Z? |
| Answers |
| 2 (a) Analyze the one-step difference using equal-size bins. | (b) Analyze the one-step difference using equal-weight bins. |
| Answers |
| 3 (a) Analyze the one-step difference using zero-centered bins, with
B1 and B3 one-half
the maximum distance from |
(b) Repeat with B1 and B3 one-quarter
the maximum distance from |
| Answers |
| 4. Try a similar experiment with one of the other financial data samples, and the affine cartoon data samples. |
| Adjust the bin boundaries of both to get a good match. |
| What can you learn about the data from looking at the cartoon IFS? |
| Does this approach have any predictive power? |
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