The following R code models a censored dependent variable (in this case academic aptitude) using a traditional least squares, tobit, and Bayesian approaches.  As depicted below, the OLS estimates (blue) for censored data are inconsistent and will ...

A friend of mine, who is quite smart by the way (she is a PhD. student in Physics at Cambridge), recently asked me for some help with Beamer. Well most of my knowledge and code came from Utkarsh when I had started about a year ago. Initially, I ha...

 posterior = (likelihood x prior) / integrated likelihoodThe combination of a prior distribution and a likelihood function is utilized to produce a posterior distribution.  Incorporating information from both the prior distribution and the likelihood function leads to a reduction in variance and an improved estimator. As n→ ∞ the likelihood centers over the ...

Let's talk about R in the insurance industry today.  David Smith's blog entry reminded me about our poster at the R user conference in Warwick in August 2011:Using R in InsuranceWe presented examples on how R can be used in the insu...

The well-known which function accepts a logical vector and returns the indices where its value equals TRUE. Actually, which also accepts matrices or multidimensional arrays. Internally, R uses a single index to run through such two- or higher-dimension...

Now after Reporting Good Enough to Share, let’s use ggplot2 and PerformanceAnalytics to turn this into this From TimelyPortfolio I have been notified that the colors aren’t great.  How does everyone like this? R code (click to download)...