Accession Number : AD0711460
Title : AN ERGODIC CAPITALIZATION PROCESS.
Descriptive Note : Research paper,
Corporate Author : INSTITUTE FOR DEFENSE ANALYSES ARLINGTON VA PROGRAM ANALYSIS DIV
Personal Author(s) : Mantell,Edmund H.
Report Date : JUL 1970
Pagination or Media Count : 27
Abstract : A stochastic process is defined and characterized as a negative exponential renewal process representing the capitalized value of a stream of money constant payments occurring at continuous randomly varying time intervals. The analysis consists of a complete description of the asymptotic properties of very generalized distributions as the rate of discount approaches zero. The main result is a central limit theorem demonstrating that the standardized distribution of the capitalized stream converges on the unit normal as the discount rate approaches zero in the limit. (Author)
Descriptors : (*MONEY, STOCHASTIC PROCESSES), (*INVENTORY CONTROL, DECISION MAKING), DISTRIBUTION FUNCTIONS, REPLACEMENT THEORY, ASYMPTOTIC SERIES, MEASURE THEORY
Subject Categories : Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE