Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jimmy bought a magic ant: It walks along the real line,(-,), as a standard Brownian motion; its position at time t is B(t), t0, B(0)

Jimmy bought a magic ant: It walks along the real line,(-,), as a standard Brownian motion; its position at time t is B(t), t0, B(0) = 0. Give your answers as (x) =P(Zx), for the correct x, where Z denotes a standard unit normal N(0,1).YOU MUST SHOW YOUR WORK.

(a) What is the probability that the ant is above (>) +3 at time t= 9?

(b) Given that the ant is at position-1.5 at time t= 5, what is the probability that the ant is above (>) +3 at time t= 9?

(c) What is the probability that the ant will reach position-5 before reaching+7?

(d) The ant drank a taste of Jimmy's father's Martini after which Jimmy concluded that the ant's position follows X(t) = 2B(t)-t+ 10, t0. What is the probability that the ant is on the positive axis (>0) at time t= 9?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Number Theory

Authors: Gove Effinger, Gary L Mullen

1st Edition

1000427129, 9781000427127

More Books

Students also viewed these Mathematics questions

Question

An action plan is prepared.

Answered: 1 week ago