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Let {Y(t), t ≥ 0} be the stochastic process defined in Question no. 21.
(a) Calculate the distribution of Y(1 )+ Y(2).
(b) Let T1 := mm{t > 0:Y(t) = 1}. Calculate the probability density function of the random variable T1.
Question no. 21
Let {W(t),t ≥ 0} be a Brownian motion with infinitesimal parameters μ = 0 and σ2 (> 0). We set
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