StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The stochastic Poisson model - Essay Example

Cite this document
Summary
It discusses its limitations and drawbacks, some of the criticism it has received and analyzes relevant empirical data. The paper will show that although the Stochastic Poisson Model does have…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.8% of users find it useful
The stochastic Poisson model
Read Text Preview

Extract of sample "The stochastic Poisson model"

Download file to see previous pages

The Poisson process is a stochastic process, which describes events that occur independently from one another and continuously. Stochastic processes are part of probability theory and are used to describe random processes. They are based on a level of indeterminacy, which means that the final outcome is unknown although some paths and outcomes are more likely than others. (Doob, 1953) The Stochastic Poisson model has been used to describe processes like rainfall, the telephone calls that arrive at a switchboard, radioactive decay of atoms, and the page views of a website.

Its use to describe the decision making of a juror is a relatively new and exotic application. When applied to decision making a Poisson process can be catalogued as special case of renewal theory (Cox, 1962). This model was proposed by Thomas and Hogue (1976) as a descriptive model in juror decision making. The model describes the jurors choice making as a two step process. In the first place the juror must consider the evidence to create a final estimate of the weight of the case against or for the defendant.

Secondly, each juror has an individual decision criterion that allocates the apparent weight of evidence into "for" and "against" decision zones. According to this model a juror will only decide against a defendant if the weight of evidence exceeds his personal decision criterion. This means that the confidence of a juror in any particular decision will be a mathematical function of the distance between the apparent weight of the evidence and their personal decision criterion. The further away these parameters are the stronger the confidence of the juror in a particular decision.

The indeterminacy of this process lies in the assumption that the apparent weight of evidence, or the perception of the weight of evidence, is randomly distributed among jurors. Thomas and Hogues (1976) decided to use an exponential probability density function to describe the way jurors arrived at a

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The stochastic Poisson model Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1564700-the-stochastic-poisson-model
(The Stochastic Poisson Model Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/miscellaneous/1564700-the-stochastic-poisson-model.
“The Stochastic Poisson Model Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1564700-the-stochastic-poisson-model.
  • Cited: 0 times

CHECK THESE SAMPLES OF The stochastic Poisson model

Computer Center

Post the simulations and results analysis, the author presents an analogy of this computer center model with the news room model with modifications recommended herewith. … The model has three inputs (Input 1, Input 2 and Input 3) connected to three job readers (CR1, CR2 and CR3) that collectively feed the job to a central print spooler (CPU) that takes the jobs from the readers and feeds into the line printers (LP1, LP2 and LP3) and the output of line printers are collated at Dispose 2. Figure 2 shows the configuration of Input 1....
16 Pages (4000 words) Case Study

Normal Distribution

It great use is derived from the fact that it's a simple model that represents complex data (Feller, 1968).... Normal distribution curves are used to describe the trends of a given data to cluster around the mean.... This paper seeks to identify whether the normal distribution is an accurate statistic method for analyzing a given system behavior....
10 Pages (2500 words) Essay

Policies of Warnsley Ltd

It is important to note that order reorder point of the level and quantity are control parameters of the first stage model.... Therefore, the period and stock level will be control restrictions in the proposed model time in the second stage.... Commonly, the model would maintain the state of lead-time and quantity of goods at that time as soon as the order is established (Jain and Malehorn, 2005; pg.... The mandate for goods of any customer is a poisson process with passion....
4 Pages (1000 words) Assignment

Modern pricing models

The Brownian motion is a significant example of the stochastic processes that satisfy a stochastic differential equation (SDE).... The success of every firm is embedded on its effectiveness to pick a price model that efficiently help attract, serve and retain its customers in an ever increasing competitive environment pricing models keep on changing and become obsolete.... In this essay, the researcher purposes to uncover various modern pricing models (MPM) and showcase how useful they are for a particular company based on their financial application and compare each model's use with the Jump Diffusion Models for options as well as evaluate the volatility smile....
1 Pages (250 words) Essay

Joint Replenishment Inventory - Can-Order Replenishment System

Results and Conclusion: While explaining the results and drawing a suitable conclusion about how the selected control systems such as Compound poisson model and (S,c,s) mechanism had attained success in lessening the setup replenishment costs, it will be vital to mention that utmost focus was laid upon inventory levels.... On the other hand, the poisson model was executed to enlarge the probability allocation of entire demand of a particular item, which occurs during the interval of replenishment lead time....
20 Pages (5000 words) Thesis

Statistics Characteristics for Judging Global Motion Direction

The paper "Statistics Characteristics for Judging Global Motion Direction" focuses on the critical, and multifaceted analysis of the different aspects of physiological studies such as the maximum likelihood concerning psychometrics such as mean and modal.... hellip; Psychophysical valuations are neurological studies that tend to elaborate that the mental processes regarding making in the middle area of the temporal cortex are dependent on the statistical characteristics of the stimuli....
16 Pages (4000 words) Research Paper

Modern pricing models

the first chapter describes the Black-Scholes… the paper also discusses the Merton model of jump diffusion as a financial analysis model, and its application in finance, its uses and properties, alongside its relationship to the Black-Scholes model.... the other pricing model explored in this paper is the Fisher Black This work involved calculating a derivative to measure how the discount rate of a warrant varies with time and stock price....
10 Pages (2500 words) Essay

Are Wireless Networks Good Enough to Support Real-Time Traffic for Industrial Control Applications

This paper “Are Wireless Networks Good Enough to Support Real-Time Traffic for Industrial Control Applications?... has identified IEEE 802.... 1, IEEE 802.... 5.... , and IEEE 802.... 5.... based technologies as the major wireless networks with potential for being applied in real-time industrial control....
11 Pages (2750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us