Corrected Diffusion Approximations in Certain Random Walk Problems.
Abstract
Correction terms are obtained for the diffusion approximation to one and two barrier ruin problems in finite and infinite time. The corrections involve moments of ladder height distributions, and a method is given for calculating them numerically. Examples show that the corrected approximations can be much more accurate than the originals. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 1978
- Accession Number
- ADA060863
Entities
People
- David Siegmund
Organizations
- Stanford University