On the probability distribution of the ranks in the symmetric random walk process

Document Type

Conference Proceeding

Publication Date

12-1-2003

Abstract

We consider a discrete-time random walk process, in which the successive increments are i.i.d. random variables from a symmetric continuous distribution with mean zero. For the random walk process of n observations, we not only prove the arc-sine law in a different way, but also explicitly compute the probabilities that the jth observation in the sequence will have a certain rank i among all n observations. Some of the directions for possible applications include extending the result to the sequential selection strategy for the random walk process and deriving the rank probability distribution for a more general stochastic process.

Publication Source (Journal or Book title)

Proceedings Annual Meeting of the Decision Sciences Institute

First Page

2393

Last Page

2398

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