This paper attempts to reconcile all inferentia1 methods which by maximizing a criterion functiona1 produce non- informative and informative priors. In particular, Good's (1968) Minimax Evidence Priors, MEP, Zellner's (1971) Maximal Data Information Priors, MDIP, and Bernardo's (1979) Reference...

Almost since its appearance, the Kalman Filter (KF) has been successfully used in control engineering. Unfortunately, most of its important results have been published in engineering journals with language, notation and style proper of engineers. In this paper, we want to present the KF in an...

Consider a random sample X1, X2,…, Xn, from a normal population with unknown mean and standard deviation. Only the sample size, mean and range are recorded and it is necessary to estimate the unknown population mean and standard deviation. In this paper the estimation of the mean and standard...

This article by Enrique de Alba and Manuel Mendoza extends Foresight’s previous coverage of methods for forecasting seasonal data when the historical series is short (less than 2-3 years of data). The authors describe and illustrate a Bayesian method for seasonal data and show that it can...

This research conducts a review of theoretical and practical developments of Markov processes in the specialized literature, highlighting their recent advances and showing their potential for their technical goodness, in modeling the decision making processes of rational agents adding more...

In this paper the methodology of real options is presented as an imperative tool for the board of directors of a firm for the decision making process on the financial assessment of projects or business strategies when there is flexibility (optionality) of making, in the future, new decisions...

This paper uses the Structural Vector Autoregression (SVAR) to examine monetary policy of the Mexican Central Bank in the framework of standard assumption of neoclassical orthodoxy for the years 2000-2011. This research presents empirical evidence that Mexican monetary authorities reacted, in...

This paper develops a dynamic model of the returns of the Stock Market Index of the Mexican Stock Exchange within the framework of the theory of extreme values and, in particular, carries out an application of the Generalized Pareto Distribution. The statistical analysis shows that many of the...

This paper is aimed at examining the theoretical determinants and empirical evidence on the use of derivatives in Latin America for risk management. The contingent claims, the development of their market, and their use, is undoubtedly one of the most powerful financial innovations available to...