Return to Example 3.10.6. Assume that the state at time n 1 is {Aa, aa}. a.
Question:
a. Suppose that we learn thatXn+1 is {AA, aa}. Find the conditional distribution of Xn. (That is, find all the probabilities for the possible states at time n given that the state at time n + 1 is {AA, aa}.)
b. Suppose that we learn that Xn+1 is {aa, aa}. Find the conditional distribution of Xn.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Probability And Statistics
ISBN: 9780321500465
4th Edition
Authors: Morris H. DeGroot, Mark J. Schervish
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