EBK FINITE MATHEMATICS & ITS APPLICATIO
EBK FINITE MATHEMATICS & ITS APPLICATIO
12th Edition
ISBN: 9780134464053
Author: HAIR
Publisher: YUZU
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Chapter 8, Problem 1P

(a)

To determine

An example of a 2×2 doubly stochastic matrix and check if the matrix is symmetric or not.

(b)

To determine

To prove: Every 2×2 doubly stochastic matrix is symmetric.

(c)

To determine

To prove: The product of the matrix [0.30.70.70.3] and the matrix [0.40.60.60.4] is doubly stochastic.

(d)

To determine

To prove: The matrix [1212] is a stable distribution for the matrix [0.30.70.70.3].

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The OU process studied in the previous problem is a common model for interest rates. Another common model is the CIR model, which solves the SDE: dX₁ = (a = X₁) dt + σ √X+dWt, - under the condition Xoxo. We cannot solve this SDE explicitly. = (a) Use the Brownian trajectory simulated in part (a) of Problem 1, and the Euler scheme to simulate a trajectory of the CIR process. On a graph, represent both the trajectory of the OU process and the trajectory of the CIR process for the same Brownian path. (b) Repeat the simulation of the CIR process above M times (M large), for a large value of T, and use the result to estimate the long-term expectation and variance of the CIR process. How do they compare to the ones of the OU process? Numerical application: T = 10, N = 500, a = 0.04, x0 = 0.05, σ = 0.01, M = 1000. 1 (c) If you use larger values than above for the parameters, such as the ones in Problem 1, you may encounter errors when implementing the Euler scheme for CIR. Explain why.

Chapter 8 Solutions

EBK FINITE MATHEMATICS & ITS APPLICATIO

Ch. 8.1 - Prob. 9ECh. 8.1 - Prob. 10ECh. 8.1 - Prob. 11ECh. 8.1 - Prob. 12ECh. 8.1 - In Exercises 13–18, draw a transition diagram...Ch. 8.1 - Prob. 14ECh. 8.1 - Prob. 15ECh. 8.1 - Prob. 16ECh. 8.1 - Prob. 17ECh. 8.1 - Prob. 18ECh. 8.1 - Woman in the Labor Force Referring to Example 5,...Ch. 8.1 - Prob. 20ECh. 8.1 - Cell Phone Usag e A cell phone provider classifies...Ch. 8.1 - Health Plan Option A university faculty health...Ch. 8.1 - Population Movement The Southwestern states were...Ch. 8.1 - Prob. 24ECh. 8.1 - T-Maze Each day, mice are put into a T-maze (a...Ch. 8.1 - 26. Analysis of a Poem In 1913, Markov analyzed a...Ch. 8.1 - Taxi Zones Refer to Example 7 (taxi zones). If,...Ch. 8.1 - Fitness A group of physical fitness devotees works...Ch. 8.1 - 29. Political Views According to the Higher...Ch. 8.1 - 30. Student Residences According to the Higher...Ch. 8.1 - Prob. 31ECh. 8.1 - Prob. 32ECh. 8.1 - Prob. 33ECh. 8.1 - Prob. 34ECh. 8.1 - Ehrenfest Urn Model The Ehrenfest urn model was...Ch. 8.1 - Prob. 36ECh. 8.1 - Prob. 37ECh. 8.1 - Prob. 38ECh. 8.1 - Prob. 39ECh. 8.1 - Prob. 40ECh. 8.1 - Prob. 41ECh. 8.1 - Prob. 42ECh. 8.1 - Prob. 43ECh. 8.1 - Prob. 44ECh. 8.1 - Prob. 45ECh. 8.1 - Prob. 46ECh. 8.1 - Prob. 47ECh. 8.1 - Prob. 48ECh. 8.1 - Prob. 49ECh. 8.1 - Repeat Exercise 49 for the matrices of Exercise...Ch. 8.1 - Prob. 51ECh. 8.1 - Prob. 52ECh. 8.2 - Solutions can be found following the section...Ch. 8.2 - Solutions can be found following the section...Ch. 8.2 - Solutions can be found following the section...Ch. 8.2 - In Exercises 16, determine whether or not the...Ch. 8.2 - In Exercises 16, determine whether or not the...Ch. 8.2 - In Exercises 16, determine whether or not the...Ch. 8.2 - In Exercises 16, determine whether or not the...Ch. 8.2 - In Exercises 1–6, determine whether or not the...Ch. 8.2 - In Exercises 16, determine whether or not the...Ch. 8.2 - In Exercises 7–12, find the stable distribution...Ch. 8.2 - In Exercises 712, find the stable distribution for...Ch. 8.2 - In Exercises 712, find the stable distribution for...Ch. 8.2 - In Exercises 7–12, find the stable distribution...Ch. 8.2 - In Exercises 712, find the stable distribution for...Ch. 8.2 - In Exercises 712, find the stable distribution for...Ch. 8.2 - Prob. 13ECh. 8.2 - Voter Patterns Refer to Exercise 24 of Section...Ch. 8.2 - Prob. 15ECh. 8.2 - Computer Reliability A certain university has a...Ch. 8.2 - Brand Loyalty Suppose that 60% of people who own a...Ch. 8.2 - 18. Transportation Modes Commuters can get into...Ch. 8.2 - Weather Patterns The changes in weather from day...Ch. 8.2 - 20. Women in the Labor Force Refer to the...Ch. 8.2 - 21. Car Rentals The Day-by-Day car rental agency...Ch. 8.2 - 22. Fitness Refer to Exercise 28 of Section 8.1....Ch. 8.2 - Genetics With respect to a certain gene,...Ch. 8.2 - 24. Weather Patterns The day-to-day changes in...Ch. 8.2 - Prob. 25ECh. 8.2 - Prob. 26ECh. 8.2 - Birth Weights Refer to Exercise 33 of Section 8.1....Ch. 8.2 - Bird Migrations Figure 5 describes the migration...Ch. 8.2 - Prob. 29ECh. 8.2 - Prob. 30ECh. 8.2 - Prob. 31ECh. 8.2 - Prob. 32ECh. 8.3 - 1. When an absorbing stochastic matrix is...Ch. 8.3 - Prob. 2CYUCh. 8.3 - Is [1.400.2.10.4.9] an absorbing stochastic...Ch. 8.3 - In Exercises 14, determine whether the transition...Ch. 8.3 - In Exercises 14, determine whether the transition...Ch. 8.3 - In Exercises 1–4, determine whether the transition...Ch. 8.3 - Prob. 4ECh. 8.3 - Prob. 5ECh. 8.3 - In Exercises 58, determine whether the given...Ch. 8.3 - Prob. 7ECh. 8.3 - Prob. 8ECh. 8.3 - Prob. 9ECh. 8.3 - Prob. 10ECh. 8.3 - Prob. 11ECh. 8.3 - In Exercises 912, convert the absorbing stochastic...Ch. 8.3 - The matrices in Exercises 1318 are absorbing...Ch. 8.3 - Prob. 14ECh. 8.3 - Prob. 15ECh. 8.3 - The matrices in Exercises 1318 are absorbing...Ch. 8.3 - Prob. 17ECh. 8.3 - Prob. 18ECh. 8.3 - Prob. 19ECh. 8.3 - Gambler’s Ruin Exercises 19 and 20 refer to...Ch. 8.3 - Gambler’s Ruin Exercises 19 and 20 refer to...Ch. 8.3 - Prob. 22ECh. 8.3 - Mouse in a Maze A mouse is placed in one of the...Ch. 8.3 - Prob. 24ECh. 8.3 - 25. Class Standings Suppose that the ...Ch. 8.3 - Quality Control A manufacturer of precise...Ch. 8.3 - Prob. 27ECh. 8.3 - Job Mobility The managers in a company are...Ch. 8.3 - Prob. 29ECh. 8.3 - Prob. 30ECh. 8.3 - Collecting Quotations A soft drink manufacturer...Ch. 8.3 - Tennis Consider a game of tennis between player A...Ch. 8.3 - Prob. 33ECh. 8.3 - Repeat Exercise 33 for the matrix...Ch. 8 - 1. What is a Markov process? Ch. 8 - Prob. 2FCCECh. 8 - Prob. 3FCCECh. 8 - Prob. 4FCCECh. 8 - Define regular stochastic matrix.Ch. 8 - 6. Define the stable matrix and the stable...Ch. 8 - Prob. 7FCCECh. 8 - Prob. 8FCCECh. 8 - Prob. 9FCCECh. 8 - Prob. 10FCCECh. 8 - Prob. 11FCCECh. 8 - In Exercises 16, determine whether or not the...Ch. 8 - Prob. 2RECh. 8 - Prob. 3RECh. 8 - Prob. 4RECh. 8 - Prob. 5RECh. 8 - In Exercises 16, determine whether or not the...Ch. 8 - Prob. 7RECh. 8 - Prob. 8RECh. 8 - Prob. 9RECh. 8 - Quality Control In a certain factory, some...Ch. 8 - Prob. 11RECh. 8 - 12. Mouse in a House Figure 1 gives the layout of...Ch. 8 - 13. Which of the following is the stable...Ch. 8 - Prob. 14RECh. 8 - Prob. 15RECh. 8 - Prob. 16RECh. 8 - Prob. 17RECh. 8 - Prob. 18RECh. 8 - Prob. 19RECh. 8 - Prob. 20RECh. 8 - Prob. 21RECh. 8 - Prob. 22RECh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - We will now show that the product of any two ...Ch. 8 - Prob. 5PCh. 8 - We will now show that the product of any two ...Ch. 8 - Prob. 7P
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