The fresh new interaction model proposed of the Yuen and Wu (2003) stretches the prior model by the imposing an excellent binomial shipment on level of sandwich-states. New requested amount of states, plus the variance and you may covariance of your number of states, will be considering. It’s listed that only the Poisson, binomial and you will negative binomial withdrawals fulfill the necessary recursive matchmaking.

Lindskog and you can McNeil (2003) mention something which have popular treat in which the shocks can be fatal or low-deadly. A deadly wonder always winds up in says and you will a low-deadly shock will not constantly trigger says. Brand new design which have non-fatal surprises acts in a similar way on thinning designs where just one density techniques has actually likelihood of creating claims of varieties. The newest model with deadly unexpected situations acts in a similar way so you’re able to the latest common techniques activities which have multiple density process. Continue reading “In the event that probability setting meets a particular recursive relationship talking about better behaved” →