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How do I set the problem in R? My data file is leverage.csv and the variables are: Date, SPX and VIX

Plot a summary of the predictive distribution (i.e., predictive mean and 90% interval. You will find lines command very helpful.) for VIX returns ranging from-20% to 20%.

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Answer #1

To input data in r when a file is "leverage.csv" then we have to use following command

Leverage <- read.csv(file = 'data/leverage.csv')
head(Leverage)

Use " as.Date( ) " to convert strings to dates

eg. mydates <- as.Date(c("2007-06-22", "2004-02-13"))

# number of days between 6/22/07 and 2/13/04
days <- mydates[1] - mydates[2]

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