Renewal Theory - Renewal-reward Processes

Renewal-reward Processes

Let be a sequence of IID random variables (rewards) satisfying

Then the random variable

is called a renewal-reward process. Note that unlike the, each may take negative values as well as positive values.

The random variable depends on two sequences: the holding times and the rewards These two sequences need not be independent. In particular, may be a function of .

Read more about this topic:  Renewal Theory

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