Question
Consider a linear death process with an initial population of 60 and an individual the death rate of 0.3 per hour. a. What are the
Consider a linear death process with an initial population of 60 and an individual the death rate of 0.3 per hour. a. What are the mean and variance of the remaining population after 5.5 hours? (4 marks) b. What is the probability that extinction occurs before 60 hours pass? (3 marks) c. What is the expected time of extinction (approximately)? (4 marks)
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
