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CS2B 2021 September Q2 iv

Hello Priyanka

The main point here is that the conditional mean of Y decreases as the value of x increases. Assuming that this remains true as the distribution of X changes (the question is about what happens if X shifts towards higher values, which means the distribution of X is changing), then the mean rainfall will decrease with either copula. We can also then compare how the conditional mean decreases with each copula. It is a similar amount of decrease for the bulk of the range of x values plotted; however, the decrease under the student's t copula is larger for the higher values of x.

Hope this helps!

Andy
 
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