Calculating Mutual information algorithm ( Mathematics & Engineering Problem)

the project is about to solve the problem on finding optimal subset selection in out-sample forecasting. i have the data that has been analyzed and produced to the output result, and the objective is to solve the output result and applied to the Mutual information algorithm. the mutual information algorithm steps is ready. what you have to do is continue the mathematical poblem in step 2 until finish. ( I stuck in information theory concept) someone who has knowledge in information theory, pattern recognition method, neural network, statistics and forecasting are advantage in solving this problem. please find the detail in attachment file