Compound Poisson Processes
A compound Poisson process with rate and jump size distribution G is a continuous-time stochastic process given by
where the sum is by convention equal to zero as long as N(t)=0. Here, is a Poisson process with rate, and are independent and identically distributed random variables, with distribution function G, which are also independent of
Read more about this topic: Compound Poisson Distribution
Famous quotes containing the words compound and/or processes:
“Give a scientist a problem and he will probably provide a solution; historians and sociologists, by contrast, can offer only opinions. Ask a dozen chemists the composition of an organic compound such as methane, and within a short time all twelve will have come up with the same solution of CH4. Ask, however, a dozen economists or sociologists to provide policies to reduce unemployment or the level of crime and twelve widely differing opinions are likely to be offered.”
—Derek Gjertsen, British scientist, author. Science and Philosophy: Past and Present, ch. 3, Penguin (1989)
“The higher processes are all processes of simplification. The novelist must learn to write, and then he must unlearn it; just as the modern painter learns to draw, and then learns when utterly to disregard his accomplishment, when to subordinate it to a higher and truer effect.”
—Willa Cather (1873–1947)