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Open Access Research Article

Establishing a stochastic model for optimal decision making incorporating a random sum of discounted random variables

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pp. 831–850Vol. 46Issue 3April 2025DOI: 10.47974/JIOS-1882XML
Received:
06 May 2024
Published Online:
03 Apr 2025
Article type:
Research Article
Language:
EN
Article no.:
JIOS-1882
Pages:
831–850

Abstract

Stochastic modelling strongly contributes to the decision making process. The paper establishes a stochastic model by combining a random variable and a random sum. The theoretical importance of the model is derived by evaluating its characteristic function, while the applicability of the model as an indicator for decision making in various disciplines consists its practical contribution. The paper performs a simulation and analyzes the outcomes.

Keywords

Subject Classifications

60E0560E1065C2090B50

References

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