S
skhurana
Member
Hi
This question asks to prove that the given process is a martingale. Looking at the solution it says to use the MGF of normal distribution and then find the expectation.
I am confused at how the MGF is used specifically how the value (-2u)^2 comes in the answer.
also B(t) - B(u) has a normal distribution so what exactly is the value of t as mentioned in the normal distribution MGF.
so the MGF says M(t) = ..... and I am trying to find what is the value of t in
B(t) - B(u)
Many thanks in advance.
Is somebody else finding these 2 chapters 8 and 9 very confusing? I think every question I am tryingto do... I just am not sure what method i should be applying.
I have passed all the previous exams in first attempt and only used online tutorials and never touched the core reading. And I am wondering if this time I should refer the core reading. Any suggestion would be very helpful.
This question asks to prove that the given process is a martingale. Looking at the solution it says to use the MGF of normal distribution and then find the expectation.
I am confused at how the MGF is used specifically how the value (-2u)^2 comes in the answer.
also B(t) - B(u) has a normal distribution so what exactly is the value of t as mentioned in the normal distribution MGF.
so the MGF says M(t) = ..... and I am trying to find what is the value of t in
B(t) - B(u)
Many thanks in advance.
Is somebody else finding these 2 chapters 8 and 9 very confusing? I think every question I am tryingto do... I just am not sure what method i should be applying.
I have passed all the previous exams in first attempt and only used online tutorials and never touched the core reading. And I am wondering if this time I should refer the core reading. Any suggestion would be very helpful.