Exercise Solution 10.1

1. We specify

   [s1]

   

   where ω = (100  250  –200  500). The mapping function is a linear polynomial.

2. We have

   [s2]

   

   [s3]

   

   [s4]

   

   [s5]

   

   and

   [s6]

   

   [s7]

   

   [s8]

   

   [s9]

   

   [s10]

   

   [s11]

   

   Accordingly ⁰p = ⁰E(¹P).

3. Using a spreadsheet, we value ⁰std(¹P) = 636.99
4. Because ⁰p = ⁰E(¹P), we can apply [10.6]:

   [s12]

   

   [s13]

   

   [s14]