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
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE