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:

1970-07-01

Pagination or Media Count:

27.0

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