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- - **Chi Squared Question**
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Chi Squared QuestionI am trying model some price data. I have decided that I think that the model should be a mean reversion one, with 1 deterministic term and a random term. I run a simulation that gives me a normally distributed number, I stick that into my model, and it gives me 3000 randomly generated prices. I want to compare that to my actual data and see if I am using the right model.. I think the Chi-Squared test is most appropriate for this... Am I right? |

Re: Chi Squared QuestionYes. |

Re: Chi Squared QuestionOne problem I am having however, is that I hear the Chi squared distribution is only good when your data values are generally greater than 5. Since mine are returns, they are rarely greater than 1... Any suggesitons? |

Re: Chi Squared QuestionMaybe you should have mentioned that above! :D Can you give some examples? |

Re: Chi Squared QuestionWell my data points are differences in the percent change of two price returns... so most of them are from -.4 to 4. |

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