##### Practical assignment #3 #####
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rm(list = ls())
# 1) Set working directory to ANLY 515 folder.
# Upload the following packages FRAPO, timeSeries, QRM, fGarch
getwd()
setwd("C:/Users/pburyi/Documents/ANLY 515/RStudio")
library(timeSeries)
library(FRAPO)
library(fGarch)
library(readxl)
library(QRM) # may need to install
library(fGarch)

# 2) Download an accompanying excel spread sheet posted on Moodle
# Set the mode of the first column to date and the remaining columns to numerical.
# The variables represent the price of gold, the price of oil, and the exchane rate
# between the USD and Japanese Yen. The exchange rate represents the price of
# 1 USD in terms of Japanese Yen.
data <- read_excel("goy.xlsx", col_types = c("date", "numeric", "numeric", "numeric"))
# 3) Modify the exchnge rate between the USD and Japanese Yen
# to represent the prices of 1 Japanese Yen in terms of USD.
# Hint: The price of 1 Japanese Yen in terms of USD, is a reciprocal
# of the price 1 USD in terms of Japanese Yen.
data$yen <- 1/data$yen

# 4) Create a new data set called "goycc" that contains all complete caises of goy data
goycc <- data[complete.cases(data), ]

# 5) Create a new variable called "date" and assign values of the "observation_date"
# variable from goycc data set. Set the format of the variable to "character"
goycc$date <- as.character(goycc$observation_date)
# 6) Create a new data set that contains three variables "gold", "oil", and "yen"
# from the goycc data set. Save it as a time series element, and use "date" as charvec.
# Label the time series as "goyts".

4.5 Exercises 1. Suppose that x(S) = {1,3,4,6} with P(X = 1) = of...