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One of the well-known class of models that involve a simple difference equation are models of mean reversion. These models typically take the form
yt+1 - yt = -a(yt - μ)where 0 < a< 1
In the equation above μ is the mean of yt.
a) Provide the intuitive explanation for the above equation.
b) Show homogenous, particular and then general solution for the difference equation.
c) Setting t=0 show the solution to the mean-reversion model.
d) Analyze the dynamic path of this model.
An unbiased die is tossed twice .Find the probability of getting a 4,5,6 on the first toss and a 1,2,3,4 on the second toss
The Ravens played 25 home games this year. They had 9 losses and 2 ties. How many games did they win? Eleven games are accounted for along with the losses and ties (9 + 2 = 11)
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the area of a triangle is 20 and its base is 16. Find the base of a similar triangle whose area is 45. Given is a regular pentagon. Find the measure of angle LHIK.
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Q. Define natural numbers Ans. The natural numbers (also called the counting numbers) are the numbers that you "naturally" use for counting: 1,2,3,4,... The set of n
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a) The distance d that can be seen from horizon to horizon from an airplane varies directly as the square root of the altitude h of the airplane. If d = 213 km for h = 3950
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In a group of 1000 people, there are 750 people will speak English and 400 people will speak Russian. How many may speak English only? How many will speak Russian? How many can spe
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