Discrete-Time Conversion for Simulating Finite-Horizon Markov Processes
Abstract
The expectation of certain integrals of functionals of continuous- time Markov chains is estimated by simulation over a finite horizon, fixed or random. By computing conditional expectations given the sequence of states visited (and possibly other information), we reduce variance. This is discrete- time conversion. Efficiency is further increased by combining discrete-time conversion with stratification and splitting.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1989
- Accession Number
- ADA210683
Entities
People
- Bennett L. Fox
- Peter W. Glynn
Organizations
- Stanford University