Perhaps outing my lack of math knowledge, but better to ask than sit in ignorance. In the simple model, why is it
V[WX]=v(1−(1−f)r)∞∑i (1−r)i−1
instead of
V[WX]=v∞∑i (1−(1−f)r)i ?
(apologies for bad math notation haven’t asked a math question on the forum yet) essentially my question is, why is (1-(1-f)r) on the outside of the summation, instead of replacing r inside the summation? Doesn’t putting it on the outside mean that you are summing with the wrong risks? Like, if I put it on the inside, wouldn’t I get
Perhaps outing my lack of math knowledge, but better to ask than sit in ignorance. In the simple model, why is it
V[WX]=v(1−(1−f)r)∞∑i (1−r)i−1
instead of
V[WX]=v∞∑i (1−(1−f)r)i ?
(apologies for bad math notation haven’t asked a math question on the forum yet) essentially my question is, why is (1-(1-f)r) on the outside of the summation, instead of replacing r inside the summation? Doesn’t putting it on the outside mean that you are summing with the wrong risks? Like, if I put it on the inside, wouldn’t I get
V[WX] = v(1-(1-f)r) / ((1-f)r) ?
Note that the assumed intervention X only affects this century. So the 1−f reduction would only apply to the first century.
(In the forum editor, you can click
Ctrl-4
to type math equations using LaTeX)