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Fixed Income Mathematics
book

Fixed Income Mathematics

by Robert Zipf
June 2003
Beginner content levelBeginner
366 pages
9h 16m
English
Academic Press
Content preview from Fixed Income Mathematics
believe that if you toss a fair coin, and it comes up heads ten times in a row,
the chances of tossing a tail on the next toss are increased. In the case of inde-
pendent events, this is untrue and is called “the gambler’s fallacy.” I have also
heard it called “the maturity of chances.”
PROBABILITY AS A MATHEMATICAL MODEL
Probabilities represent a mathematical model of the world, similar to the
models we discussed in Chapter 3. However, like the other models, they cor-
respond to the world only approximately. For example, a tossed coin could, at
least in theory, land on its edge (this was the subject of a Twilight Zone episode).
Similarly, a die could, at least in theory, split in two when it is cast (this
occurred in one of Thomas Hardy’s novels). ...
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Publisher Resources

ISBN: 9780127817217