Facilitation of Proactive Decision Making by Using Models Incorporating Stochastic Integrals

Authors

DOI:

https://doi.org/10.26713/cma.v14i1.1846

Keywords:

Stochastic integral, Model, Strategic thinking, Systemics

Abstract

Stochastic integrals are generally recognized as very strong tools for several significant research areas of probability theory. Moreover, stochastic discounting models are suitable for the description of situations in various practical disciplines. The present paper concentrates on the establishment of theoretical properties for two types of stochastic integrals. These properties facilitate the study of the extremely useful family of infinitely divisible distributions. Moreover, the paper makes use of such properties for the formulation of stochastic discounting models. In addition, the paper provides interpretations of these stochastic models in strategic thinking, proactive global decision making, cindynics, systemics and other very significant practical disciplines.

Downloads

Download data is not yet available.

References

P. Caithamer, Decoupled double stochastic fractional integrals, Stochastics 77(3) (2005), 205 – 210, DOI: 10.1080/10451120500138556.

J. M. Harrison, Ruin problems with compounding assets, Stochastic Processes and their Applications 5 (1977), 67 – 79, DOI: 10.1016/0304-4149(77)90051-5.

Z. J. Jurek and W. Vervaat, An integral representation for selfdecomposable banach space valued random variables, Zeitschrift für Wahrscheinlichkeitstheorie und Verwandte Gebiete 62 (1983), 247 – 262, DOI: 10.1007/BF00538800.

E. Lukacs, A characterization of stable processes, Journal of Applied Probability 6 (1969), 409 – 419, DOI: 10.2307/3212010.

L. N. K. Mambo, R. M. M. Mabela, I. K. Kanyama and E. M. Mbuyi, On the contribution of the stochastic integrals to econometrics, Applied Mathematics 10(12) (2019), 1048 – 1070, DOI: 10.4236/am.2019.1012073.

C. Patterson, Critical Thinking Mastery, Lightning Source Incorporated, 752 pages (2020).

M. Pidd, Tools for Thinking: Modelling in Management Science, Wiley, New York, 360 pages (2009).

V. S. Pugachev and I. N. Sinitsyn, Stochastic Systems: Theory and Applications, World Scientific, (2002), DOI: 10.1142/4805.

B. Ramachandran, Identically distributed stochastic integrals, stable processes and semi-stable processes, Sankhy ¯a: The Indian Journal of Statistics 56(1) (1994), 25 – 43, URL: https://www.jstor.org/stable/25050966.

M. F. Rubinstein, Tools for Thinking and Problem Solving, Pearson College Div., (1985).

F. W. Steutel and K. van Harn, Infinite divisibility of probability distributions on the real line, 1st edition, CRC Press, Boca Raton, 550 pages (2004), DOI: 10.1201/9780203014127.

Downloads

Published

09-05-2023
CITATION

How to Cite

Artikis, P. T., & Artikis, C. T. (2023). Facilitation of Proactive Decision Making by Using Models Incorporating Stochastic Integrals. Communications in Mathematics and Applications, 14(1), 257–262. https://doi.org/10.26713/cma.v14i1.1846

Issue

Section

Research Article