Debugging

Verify your diagouter() on a small test case as follows

A=randn(10,3)+i*randn(10,3); %# Form random A and B matrices
B=randn(10,3)+i*randn(10,3);
diag(A*B') %# Direct calculation from definition and octave operators
diagouter(A,B) %# Your routine

Recall that ``''' in octave represents complex-conjugate transpose. Also, diag() takes the diagonal elements of a matrix just as in the notation from class.

Note: Do not try this with your actual full-sized data sets - you will likely crash octave!