An alternative and direct proof of Walds identity (2.2.4) uses indicator r.v.s It = 1 if
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An alternative and direct proof of Wald’s identity (2.2.4) uses indicator r.v.’s It = 1 if τ ≥ k, and = 0 otherwise. Show that, in the notation of Proposition 5, Sτ = Σ∞k=1 ξkIk, and that the r.v.’s ξk and Ik are independent. Derive from this (2.2.4).
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By the definition of Iks the rv Ik 1 if and only if kt This implies t k...View the full answer
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