Authors: Constantinos Artikis; John Sorros
Addresses: Department of Informatics, University of Piraeus, 80 Karaoli and Dimitriou Street, 185 34 Piraeus, Greece ' Department of Business Administration, School of Economics, Business and International Studies, University of Piraeus, 80 Karaoli and Dimitriou Street, 185 34 Piraeus, Greece
Abstract: Stochastic multiplicative models based on the product of two positive random variables are considered as analytical tools of particular theoretical and practical interest. Random contractions constitute a class of stochastic multiplicative models with very useful applications in a wide variety of disciplines. The paper concentrates on the formulation of a stochastic multiplicative model by making use of the concept of maximum of a random number of positive random variables. Sufficient conditions for representing that model as a random contraction are established. The paper also provides interpretation in stochastic discounting and application in systemics and informatics of such a model. Moreover, the paper clarifies the structural interconnections between the formulated stochastic multiplicative model and the fundamental concepts of proactivity, information, and intelligence.
Keywords: stochastic model; random contraction; discounting; systemics; informatics; interconnection; proactivity; information; intelligence; behaviour; computational intelligence.
International Journal of Computational Intelligence Studies, 2017 Vol.6 No.1, pp.29 - 39
Received: 11 Sep 2015
Accepted: 24 Oct 2015
Published online: 11 Aug 2017 *