Dear Sir,
Thanks a lot for your wonderful guidance. It gave me a new vision to look at
teh equations. Really appreciate.
Thanks a lot once again.
Katherine
On Monday, 6 January 2014 5:31 PM, Frede Aakmann Tøgersen
wrote:
Hi
Reading the error message carefully you can see that f() is not
Hi
Reading the error message carefully you can see that f() is not defined at 0:
> uniroot(f, c(0, 1))
Error in uniroot(f, c(0, 1)) : f.lower = f(lower) is NA
> f(0)
[1] NaN
If you plot f() in the interval (0,1) then you'll see there is two solutions:
> uniroot(f, c(0.0001, 1))
Error in uniroo
On 06-01-2014, at 12:41, Katherine Gobin wrote:
> Dear R forum
>
> I have following variables -
>
> EAD = 1
> LGD = 0.45
> PD = 0.47
> M = 3
>
> # Equation 1
>
> R = 0.12*(1-exp(-50*PD))/(1-exp(-50)) + 0.24*(1-(1-exp(-50*PD))/(1-exp(-50)))
>
> b = (0.11852 - 0.05478 * log(PD))^2
>
> K
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