1. 

   mcallist Member

   Hi,
   
   Can someone please explain how we can establish that xt|xt-1 is normally distributed with mean alphaxt-1 and variance sigma squared. I'm sorry about the notation. Help would be much appreciated with this.
   
   Thanks

    

   mcallist, Sep 23, 2017

   #1
2. 

   John Lee ActEd Tutor Staff Member

   We're just using our CT3 knowledge that when you add a constant to a normal distribution you end up with another normal distribution: eg \(N(\mu, \sigma^2) + c \sim N(c+\mu, \sigma^2)\)

    

   John Lee, Sep 25, 2017

   #2

   mcallist likes this.
3. 

   mcallist Member

   Thanks a lot John

    

   mcallist, Sep 27, 2017

   #3

   John Lee likes this.

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