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1. Variance of normal random variables. a. Run a simulation to determine what is the standard...

1. Variance of normal random variables.

a. Run a simulation to determine what is the standard deviation of the sum of 16 standard normal variables. Make sure that you run a sufficient number of simulations so that your answer is stable (e.g., run the simulation a few times to make sure the answer comes up about the same). Include both your code and answer in your solutions.

b. Given the results of your simulation, what do you think is the standard deviation for the sum of N standard normal random variables.

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