In the introduction to their book 'The Theory of Games and Economic Behaviour' von Neumann and Morgenstern consider the arguments against the use of mathematics in economics. One of the reasons they believe that previous applications of mathematics to economics had been unsuccessful was that...
The contract you're describing... handing over a portion of your future income for a current lump sum.. that is what a loan is anyway?
The fact remains that the situation you're describing... an individual paying for current public investment with the intention of recouping the losses by the...
If the creditor has an expected return of $200 for an investment of $100 why would this be a 'weak' incentive?
Also how would such a scheme provide clear benefits over the government investing in public works with the plan to pay for them using future tax receipts, which given the increase in...
As far as part b) goes my notes don't seem to mention what makes a DTMC regular? Is that just the fact that P and initial distribution completely characterize the chain?
I've not used any of these for Statistics but it might be worth trying;
http://www.ocwconsortium.org/index.php?option=com_coursefinder&view=search&uss=1&Itemid=9&q=statistics&l=
Also might be worth having a look at the Itunes U material.
Hmm couple of thoughts.
For a each game you could describe it as a binomial tree going from (0,0) to (15,0) or (0,15) and so on. Of course you will have to remove the paths that are no longer feasible once the game has been won. Then you will have to take into account that at 40,40 you...
Have you tried putting it into the form of the exponential family first?
Your MLE = x bar is incorrect. What did you get for your log-likelihood function?