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

importance of mathamatical expection in business

The generalization of the normal distribution used for the characterization of functions. It is known as a Gaussian process because it has Gaussian distributed finite dimensional m

A law supposedly applicable to voting behaviour which has a history of several decades. It may be stated thus: Consider a two-party system and suppose that the representatives of t

Indirect least squares: An estimation technique used in the fitting of structural equation models. Commonly least squares are first used to estimate reduced form parameters. Usi

The GRE has a combined verbal and quantitative mean of 1000 and a standard deviation of 200.

Multidimensional scaling (MDS)  is a generic term for a class of techniques or methods which attempt to construct a low-dimensional geometrical representation of the proximity matr

Case series : It is the series of reports on the condition of the individual patients made by treating physician. Such reports might be helpful and informative for the rare disease

After graduating from Tech Julia was unable to find regular employment and approached the Director of Athletics at Tech to request that she remain a vendor of the following year.

Bubble plot : A method or technique for displaying the observations which involve three variable values. Two of the variables are used to make a scatter diagram and values of the t