Describe martingale, Advanced Statistics

Assignment Help:

Martingale: In the gambling context the term at first referred to a system for recouping losses by doubling the stake after each loss has occured. The modern mathematical concept can also be seen in such terms as the mathematical formalization of the concept of a 'fair' game defined as one in which the expected size of the gambler's bank after nth game given the results of all earlier games is unchanged from the size after the (n- 1)th game, that is the gambler's average gain or loss after each game, given the earlier history of the games is zero. More formally the term refers to the stochastic process, or a series of random variables S1; S2; . . ., which is such the expected value of the ðn þ 1Þth random variable conditional on values of the first n, equals to the value of the nth random variable which can be given as

905_martingale.png 

so that E(Sn) does not depend on the value of n.


Related Discussions:- Describe martingale

Cauchy integral, Cauchy integral : The integral of the function, f (x), fro...

Cauchy integral : The integral of the function, f (x), from a to b are de?ned in terms of the sum   In the statistics this leads to the below shown inequality for the expecte

Lagrange multipliertest, The Null Hypothesis - H0:  There is autocorrelatio...

The Null Hypothesis - H0:  There is autocorrelation The Alternative Hypothesis - H1: There is no autocorrelation Rejection Criteria: Reject H0 (n-s)R 2 > = (1515 - 4) x (0.

Tree, Tree is the term from the branch of the mathematics which known as t...

Tree is the term from the branch of the mathematics which known as the graph theory, used to describe any set of the straight-line segments joining the pairs of points in some pro

Z-tests, Hello! I am currently in graduate school earning a masters in ment...

Hello! I am currently in graduate school earning a masters in mental health counseling. I am in a stats course at current and we are reviewing z-scores. I am a little lost because

Zero sumgame, Zero sumgame is a game played by the number of persons in wh...

Zero sumgame is a game played by the number of persons in which the winner takes all stakes given by the losers so that the algebraic sum of gains at any stage is zero. Number of

Outlier, Outlier is an observation which seems to deviate markedly from th...

Outlier is an observation which seems to deviate markedly from the other members of the sample in which it happens. In the set of systolic blood pressures, {125, 128, 130, 131, 19

Describe ignorability., Ignorability : The missing data mechanism is said t...

Ignorability : The missing data mechanism is said to be ignorable for likelihood inference if (1) the joint likelihood for the responses of the interest and missing data indicators

Describe hello-goodbye effect., Hello-goodbye effect : The phenomenon initi...

Hello-goodbye effect : The phenomenon initially described in psychotherapy research, but one which might arise whenever a subject is assessed on two occasions, with some interventi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd