Part (i) a has asked to define the parameters and the solution has been provided in terms of the transition intensities. Part(ii) a has asked us to estimate the parameters... However the solution mentions that on providing transitional intensities only partial credit will be given. Why is it so??? With regards, Pratik
Hi Aditya, 1. The first part also askes for parameters and in that the solution provides for transition intensities. 2. Are transition intensities not parameters to evaluate the jump process? Is there something that I am missing here? Thanks
Yes - the transition intensities are parameters needed to evaluate the jump process. This is clear in the answer given to (i)(a). I think that particular comment by the examiners just means that if you only wrote down the transition intensities (and did not give the generator matrix asked for) then you would be penalised.
