Consider the following stochastic system. Let Xn be the price of a certain stock (rounded to the nearest cent) at the time that the stock market closes on the n-th day starting today. Would it be appropriate to model this system as a Discrete-time Markov Chain?

Consider the following stochastic system. Let Xn be the price of a certain stock (rounded to the nearest cent) at the time that the stock market closes on the n-th day starting today. Would it be appropriate to model this system as a Discrete-time Markov Chain?

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Consider the following stochastic system. Let Xn be the price of a certain stock (rounded to the nearest cent) at the time that the stock market closes on the n-th day starting today.

Would it be appropriate to model this system as a Discrete-time Markov Chain?

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