Lecture Outline Introduction to queuing systems Conceptual representation of queuing systems Codes for queuing models Terminology and notation Little's Law and basic relationships Birth-and-death processes The M/M/1 queuing system State transition diagrams Steady-state probabilities
Our task How to estimate and test discount factor model. Ep,=E(m (data 1, parameter)) 1. Bring an asset pricing model to data to estimate free parameters. For example, parameter,yinm=B(c+1/c)-y Or the b in m=b f 2. Evaluate the model, is it a good model or not? Is another model better?