Student Name: Alice Ciavatta Assignment: Week 9 - Monte Carlo OLS & Numerical Integration

Overall Assessment

Grade: ✅ (Pass)

The submission is excellent. The Monte Carlo simulation is correctly implemented, using matrix algebra for OLS. The numerical integration section handles the Simpson’s rule parity requirement correctly by checking the grid size and adjusting it (truncation) when necessary. The code is robust and well-documented.

Task-by-Task Check

  1. Function Definition: ✅ montecarlo_ols is correctly defined.
  2. DGP Logic: ✅ Correct.
  3. OLS Logic: ✅ Correct (Matrix inversion method).
  4. Execution: ✅ Correct loops.
  5. Visuals: ✅ Histograms with normal approximation.
  6. Statistics: ✅ Mean and variance.
  7. Interpretation: ✅ Detailed discussion.
  8. Utility Function: ✅ Correct.
  9. Trapezoidal Rule: ✅ Correct.
  10. Simpson’s Rule: ✅ Correct. You explicit check mod(N-1, 2) ~= 0 and adjust the grid. This is the correct way to handle the parity constraint.
  11. Grid Loop: ✅ Correct.
  12. Visuals: ✅ Convergence plot saved.
  13. Interpretation: ✅ Correct comparison.

Technical Implementation

  • Code Quality: Very high. Clear structure and logical flow.
  • Robustness: Good handling of edge cases (gamma=1, even grids).

Suggestions for Improvement

  • None.

Summary

13/13 tasks correct. Excellent work.