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Figure21Empiricaldistributionofobserveddata substitutionprinciplesincethefunctionalformisnotunique Example1 SupposethatX1XnsN2ThenEXZxdFxFand2Zx2dFx2HencebbFZ

Figure2.1:Empiricaldistributionofobserveddata \substitutionprinciple" sincethefunctionalformisnotunique. Example1 .SupposethatX1;;XnsN(;2).Then=EX=ZxdF(x)=(F)and2=Zx2dF(x)2:Hence b=(bF)=Z

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