If (Xo, ..., XN) is a martingale and the function f : R → R is convex, then (f(X,),..., f(XN)) is a martingale. True O False
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- Repeat Example 5 when microphone A receives the sound 4 seconds before microphone B.Let the stochastic process {Xt} be defined as Zt ; if t is even (Z2t-1 -1)=21/2; if t is uneven, where {Zt} is identically and independently distributed as Zt is N(0, 1). Show that {Xt} is WN(0, 1), but not IID (0,1).1. Define a Stochastic process and briefly discuss the meaning of measurability of a stochastic process. 2. Consider the ARMA(1,1) model yt = 0.8yt-1 + et + 0.5et-1 with et ~ WN(0, σe2). Derive the Wold representation of yt. 3. Consider the ARMA(2,1) process Φ(L)Xt = Θ(L)et with Φ(L) = 1 − 1.3L + 0.4L2 , Θ(L) = 1 + 0.4L and et ∼ WN(0, σe2). Obtain its Wold representation. 4.Consider the ARMA(2,2) process given by Xt =0.4Xt−1+0.45Xt−2+et+et−1+0.25et−2 with et ∼WN(0,σe2). 5. Consider the MA(1) process yt = et+1.5et−1 with et ∼ WN(0,σe2). Is the above MA(1) a Wold representation? Why or Why not? If not, obtain a suitable Wold representation.
- Consider a simple model of the hunting behaviour of a fox. In a single day, the fox catches either 0 or 1 rabbits, with probabilities 0.3 and 0.7, respectively. The outcome of hunting on day m is independent of all other days.We describe this system through a discrete-time, discrete-state stochastic process R(m), where R is the total number of rabbits caught between the end of day 0 (defining a starting point of our observation) and the end of day m. m = 0,1,2,3... is thus a discrete time parameter, and R(0) = 0 by definition (a) It can be shown that pr(m) – the probability of catching R = r rabbits in m days – is given by a binomial distribution (see Appendix A.2.1). Here, m is the number of “trials”, r the number of successes and q = 0.7 the probability of success. Hence give expressions for:i The mean number of rabbits caught after m days. ii The standard deviation of the total number rabbits caught after m days. iii The standard deviation of the mean number of rabbits caught per day…Suppose Xn is an IID Gaussian process, withµX[n]=1, and σ2 X[n]=1Now, another stochastic process Yn = Xn − Xn−1. Please find:(a) The mean µY (n).(b) The variance σ2Y (n).(c) The auto-correlation RY (n, k)If X1, X2, ... , Xn constitute a random sample of size n from an exponential population, show that X is a consis-tent estimator of the parameter θ.
- Subject: Stochastic process Question 1 is attached to the image section belowLetX1,X2,...,Xn be a sequence of independent and identically distributed random variables having the Exponential(λ) distribution,λ >0, fXi(x) ={λe−λx, x >0 0, otherwise (a) Show that the moment generating function mX(s) :=E(esX) =λ/(λ−s) for s< λ;Question 3. Recall that the discrete stochastic process {Xn, n = 0, 1, 2,...} is a Markov chain if for each n, P(Xn+1 = j|Xn = i, Xn-1 = in-1,..., Xo = io) = P(Xn+1 = j|Xn = i) = Pij. Let {Xn, n = 0, 1, 2,...} be a Markov chain, does the following hold as well? P(Xn+2=jXn = i, Xn-1 = in-1, ..., Xo = io) = P(Xn+2 = j|Xn = i) Give a proof if you think it is true, otherwise give a counterexample. Hint: You may use the law of total probability for conditional probability without proof. Please step by step answer.
- In the B&K model of Example 18.5-1, suppose that the interarrival time at the checkout area is exponential with mean 5 minutes and that the checkout time per customer is also exponential with mean 10 minutes. Suppose further that will add a fourth counter. Counters 1,2, and 3 will open based on increments of two customers and counter 4 will open when there are 7 or more in the store. (a) The steady-state probabilities, for all . (b) The probability that a fourth counter will be needed. (c) The average number of idle counters.LetX1,X2,...,Xn be a sequence of independent and identically distributed random variables having the Exponential(λ) distribution,λ >0, fXi(x) ={λe−λx, x >0 0, otherwise Define the random variable Y=X1+X2+···+Xn. Find E(Y),Var(Y)and the moment generating function ofY.If the errors are homoscedastic and you use the heteroskedasticity-only formula for standard errors, the standard errors are wrong. True or False? Explain.