Mathematics, 14.11.2019 04:31 rosarioemily580
The unit price of a certain commodity evolves randomly from day to day with a general downward drift but with an occasional upward jump when some unforeseen event excites the markets. long term records suggest that, independently of the past, the daily price increases by a dollar with probability o.45, declines by 2 dollars with probability o.5, but jumps up by 10 dollars with probability o. o5. let co be the price today and cn the price n days into the future. how does the probability p(cn > co) behave as n-> oo?
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The unit price of a certain commodity evolves randomly from day to day with a general downward drift...
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