by Azor P. A., Nwobi F. N. and Amadi I. U.
Original Research
The advantage of financial assets and their return rates lie in economic investments which accumulate wealth daily, monthly, yearly and probably periodically, etc. For that reason, this paper considered the problem of a system of Stochastic Differential Equations (SDEs) for economic investments whose rate of returns and asset valuation follow series price index, periodic additive effects and periodic multiplicative effects; which are used as major parameters in the model. The problems were accurately solved independently by adopting Ito’s theorem which presented closed-form diverse investment results for proper investment decisions. Finally, we presented graphical results which represented the behaviour of the economic investments and discussed the effect of the relevant parameters.
American Journal of Applied Mathematics and Statistics. 2024, 12(2), 28-34. DOI: 10.12691/ajams-12-2-2
Pub. Date: April 24, 2024
by Quan Yuan, Zhixin Yang and Yayuan Xiao
Original Research
This paper investigates the application of the Kiefer-Wolfowitz (KW) algorithm, a stochastic approximation technique, to solve the newsvendor problem under uncertain demand. The proposed approach enables the newsvendor to learn from observed profits and converge to the optimal order quantity, even when the demand distribution is unknown. Numerical experiments demonstrate the algorithm's effectiveness in handling stochastic demand and provide insights into its convergence properties. The paper highlights the potential of stochastic approximation methods in tackling inventory management challenges and discusses future research directions.
American Journal of Applied Mathematics and Statistics. 2024, 12(2), 24-27. DOI: 10.12691/ajams-12-2-1
Pub. Date: April 21, 2024