R
rahul
Member
in part i) i understood that why process is not markov. it is not markov since following a year with one or more claims:
we can move back one level or two levels depending upon the number of claims in the year before the most recent year.
so hetre x(t) depends not only on x(t-1) but on x(t-2) also.
I am really very confused in ii) part.. how did we split the given levels to form a process y(t) which is markov. i am not able to get it.
somebody please elaborate the whole scenario and how we will do the ii) part
we can move back one level or two levels depending upon the number of claims in the year before the most recent year.
so hetre x(t) depends not only on x(t-1) but on x(t-2) also.
I am really very confused in ii) part.. how did we split the given levels to form a process y(t) which is markov. i am not able to get it.
somebody please elaborate the whole scenario and how we will do the ii) part