Describe martingale, Advanced Statistics

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.

Posted Date: 7/30/2012 3:11:18 AM | Location : United States







Related Discussions:- Describe martingale, Assignment Help, Ask Question on Describe martingale, Get Answer, Expert's Help, Describe martingale Discussions

Write discussion on Describe martingale
Your posts are moderated
Related Questions
Formal graphical representation of the "causal diagrams" or the "path diagrams" where the  relationships are directed but acyclic (that is no feedback relations allowed). Plays an

Human height growth curves : The growth of human height is, in common, remarkably regular, apart from the pubertal growth spurt. The satisfactory longitudinal development curve is

Lagrange Multiplier (LM) test The Null Hypothesis - H0: There is no heteroscedasticity i.e. β 1 = 0 The Alternative Hypothesis - H1:  There is heteroscedasticity i.e. β 1

A term usually used for unobserved individual heterogeneity. Such variation is of main concern in the medical statistics particularly in the analysis of the survival times where ha

Indirect standardization is the procedure of adjusting the crude mortality or morbidity rate for one or more variables by making use of a known reference population. It may, for in

Geo statistics: The body of methods useful for understanding and modelling spatial variability in a course of interest. Central to these techniques is the idea that measurements t

A subject who withdraws from the study for whatever reason, adverse side effects, noncompliance, moving away from the district, etc. In number of cases the reason may not be known.

Raking adjustments  is an alternative to the post stratification adjustments in the complex surveys which ensures that the adjusted weights of the respondents conform to each of th

Classification and regression tree technique (CART): The alternative to the multiple regression and associated techniques or methods for determining subsets of the explanatory va

For a career woman, wearing lipstick has become an integral part of her daily life. It is not unusual for a woman to look for a lipstick that will stay on her lips and not smudge