RISK THEORY - LECTURE NOTES 1. INTRODUCTION The primary subject of Risk Theory is the development and study of mathematical and statistical models to describe and predict the behaviour of insurance portfolios‚ which are simply financial instruments composed of a (possibly quite large) number of individual policies. For the purposes of this course‚ we will define a policy as a random (or stochastic) process generating a deterministic income in the form of periodic premiums‚ and incurring financial
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mathematics and physics takes the order of linearity and shows how it relates to the unpredictability of the world around us. It is called Chaos Theory. The secular definition of chaos can be misleading when the word is used in a scientific context. As defined by Webster’s dictionary chaos is total disorder. That may lead one to believe that chaos theory is indeed the study of total disorder‚ which it truly is not. In 1986 at a prestigious conference on Chaos another definition for chaos was introduced
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Theory of Parabolas By Amergin McDavid A parabola is designed on a basic formula‚ Y=ax^2+bx+c‚ which allows it to achieve a curve not seen in a normal line graphed using a Y=mx+b format. To the left is a graph who’s formula is y=x^2‚ where a=1‚ b=0‚ and c=0. I have isolated the (a) factor to see its effects on the parabola. Below is a graph where I have changed the (a) multiple times. The result is that as the (a) decreases‚ the mouth of the parabola widens due to the fact that (a) is essentially
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Alternating Current Theory - J R Lucas An alternating waveform is a periodic waveform which alternate between positive and negative values. Unlike direct waveforms‚ they cannot be characterised by one magnitude as their amplitude is continuously varying from instant to instant. Thus various forms of magnitudes are defined for such waveforms. The advantage of the alternating waveform for electric power is that it can be stepped up or stepped down in potential easily for transmission and utilisation
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The kinetic theory of gases describes a gas as a large number of small particles (atoms or molecules)‚ all of which are in constant‚ random motion. The rapidly moving particles constantly collide with each other and with the walls of the container. Kinetic theory explains macroscopic properties of gases‚ such as pressure‚ temperature‚ or volume‚ by considering their molecular composition and motion. Essentially‚ the theory posits that pressure is due not to static repulsion between molecules‚ as
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"Declaratory theory is propounded on the belief that judges’ decisions never make law‚ rather they only constitute evidence of what the law is. However‚ this view is no longer accepted. There are three reasons for the persistence of the declaratory theory. In the first place‚ it appealed in the separation of powers. Secondly‚ it concealed the fact that judge-made law is retrospective in its effect and finally‚ when the judges confronted with a new‚ unusual‚ or different point‚ they tend to present
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Ricardian Trade Theory By Kiminori Matsuyama1 Abstract: Ricardian Trade Theory takes cross-country technology differences as the basis of trade. By abstracting from the roles of factor endowment and factor intensity differences‚ which are the primary concerns of Factor Proportions Theory‚ Ricardian Trade Theory offers a simple and yet powerful framework within which to examine the effects of country sizes‚ of technology changes and transfers‚ and of income distributions. Moreover‚ its simple
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In this essay I aim to describe two theories (Equity Theory and Social exchange theory) of relationships and to consider how they might influence the therapist engaged in couples counseling‚ noting their similarities and differences. Equity theory is a theory about fairness. Its application to close relationships has been primarily advanced by Elaine Hatfield (previously known as Elaine Walster) and her colleagues in the book Equity: Theory and Research (Walster‚ Walster‚ and Berscheid 1978). The
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are viewed as undervalued. Peoples consumer choices (taste and style) are seen to be indicators of who they are as a person and of their moves within the games of class‚ prestige‚ status‚ hierarchy‚ fashionability (“Features of a Consumer Society” McGregor 2011). Many spending and investments are committed to consuming‚ regardless of whether it is good for the environment and health‚ for example the publicity funds can be higher than the education budget. Consuming brings wasting. Customers are trapped
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App13A_SW_Brigham_778322_R2 12/24/02 5:14 AM Page 13A-1 13A ILLUSTRATION OF THE THREE DIVIDEND POLICY THEORIES Figure 13A-1 illustrates the three alternative dividend policy theories: (1) Miller and Modigliani’s dividend irrelevance theory‚ (2) Gordon and Lintner’s bird-in-thehand theory‚ and (3) the tax preference theory. To understand the three theories‚ consider the case of Hardin Electronics‚ which has from its inception plowed all earnings back into the business and thus has never paid
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