Give a heuristic explanation why the ruin probability in (2.4.5) must be smaller than in (2.4.7). Double

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Give a heuristic explanation why the ruin probability in (2.4.5) must be smaller than in (2.4.7). Double check it using simple algebra. qu - 1-pa (2.4.5)

qu=p. (2.4.7)

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Probability And Stochastic Modeling

ISBN: 9781439872062

1st Edition

Authors: Vladimir I. Rotar

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Question Posted: Jan 04, 2024 01:29 PM

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Give a heuristic explanation why the ruin probability in (2.4.5) must be smaller than in (2.4.7). Double

Question:

qu - 1-pa (2.4.5)

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Denote by Aua the event that the process dropped to zero level and it ...View the full answer

Probability And Stochastic Modeling

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