A strong law of large numbers for a probabilistic cash flow model

Authors

  • M.N. Pascu Transilvania University of Brasov, Romania
  • N.R. Pascu Southern Polytechnic State University, USA

Keywords:

Strong Law of Large Numbers, random walk, random environment, martingale, cash flow

Abstract

In a previous paper, the first author introduced a probabilistic model for the cash flow in a (homogeneous) population. In the present paper, we extend the model by considering the case of a non-homogeneous population, and we derive the properties of the model. We show that the random walk corresponding to the trajectory of a coin within the population is a recurrent and irreducible martingale, and we derive a corresponding Strong Law of Large numbers for it.

Author Biographies

M.N. Pascu, Transilvania University of Brasov, Romania

Department of Mathematics and Computer Science, Str. Iuliu Maniu Nr. 50, Brasov – 500091
“Simion Stoilow” Institute of Mathematics of the Romanian Academy, P.O. Box 1-764, Bucure¸sti – 01470, Romania, e-mail:

N.R. Pascu, Southern Polytechnic State University, USA

Department of Mathematics, 1100 S. Marietta Pkwy, Marietta, GA 30060-2896

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Published

2013-01-17

Issue

Vol. 5(54) No. 2 (2012)

Section

MATHEMATICS