Recently, the financial mathematics has been emerged to interpret and predict the underlying mechanism that generates an incident of concern. A system of differential equations can reveal a dynamical development of financial mechanism across time. Multivariate wiener process represents the stochastic term in a system of stochastic differential equations (SDE). The standard wiener process follows a Markov chain, and hence it is a martingale (kind of Markov chain), which is a good integrator. Though, the fractional Wiener process does not follow a Markov chain, hence it is not a good integrator. This problem will produce an Arbitrage (non-equilibrium in the market) in the predicted series. It is undesired property that leads to erroneous conclusion, as it is not possible to build a mathematical model, which represents the financial phenomenon. If there is Arbitrage (unbalance) in the market, this can be solved by Wick-Ito-Skorohod stochastic integral (renormalized integral). This paper considers the estimation of a system of fractional stochastic differential equations (FSDE) using maximum likelihood method, although it is time consuming. However, it provides estimates with desirable characteristic with the most important consistency. Langevin method can be used to find the mathematical form of the functions of stochastic differential equations. This includes drift and diffusion by estimating conditional mean and variance from the data and finding the suitable function achieves the least error, and then estimating the parameters of the model by numerical optimal solution search method. Data used in this paper consist of three banking sector stock prices including Baghdad Bank (BBOB), the Commercial Bank (BCOI), and the National Bank (BNOI). © 2020 International University of Sarajevo.
Frequently, Load associated mode of failure (rutting and fatigue) as well as, occasionally, moisture damage in some sections poorly drained are the main failure types found in some of the newly constructed road within Baghdad as well as other cities in Iraq. The use of hydrated lime in pavement construction could be one of the possible steps taken in the direction of improving pavement performance and meeting the required standards. In this study, the mechanistic properties of asphalt concrete mixes modified with hydrated lime as a partial replacement of limestone dust mineral filler were evaluated. Seven replacement rates were used; 0, 0.5, 1, 1.5, 2, 2.5 and 3 percent by weight of aggregate. Asphalt concrete mixes were prepared at their
... Show MoreThe present studier aims to study the kinetic of reaction at different experimental conditions depending on coliform bacteria concentration and hypochlorite ion. The effects that had been investigated were different of sodium hypochlorite doses, contact time, pH and temperature (20, 29, 37) o C. The water samples were taken from Al-Wathba water treatment plant in Risafa side of Tigris River in Baghdad. The biological tests included the most probable number (M.P.N) for indicating the concentration of coliform bacteria with different contact times and the total plate count (T.P.C) for indicating the amount of colonies for general bacteria. The iodimetry method (chemical test) was used for indicating the concentration of hypochlo
... Show MoreFracture pressure gradient prediction is complementary in well design and it is must be considered in selecting the safe mud weight, cement design, and determine the optimal casing seat to minimize the common drilling problems. The exact fracture pressure gradient value obtained from tests on the well while drilling such as leak-off test, formation integrity test, cement squeeze ... etc.; however, to minimize the total cost of drilling, there are several methods could be used to calculate fracture pressure gradient classified into two groups: the first one depend on Poisson’s ratio of the rocks and the second is fully empirical methods. In this research, the methods selected are Huubert and willis, Cesaroni I, Cesaroni II,
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Directional control valve is the main part in hydraulic system which has complex construction, such as moving spool to control the direction of actuator for required speed. Utilizing MR fluid properties, direct interface can be realized between magnetic field and fluid power without the need for moving parts like spool in directional control valves. This paper dedicates the experimental test of four ways, three position MR directional control valve. The experimental methods were done by connecting the MR directional control valve with hydraulic actuators. The experiment was conducted to show the principle work of the valve functionally and performance test for valve was done. The valve works proportionally to control the direction a
... Show MoreThe research aims at shedding light on the impact of information technology in reducing tax evasion in the General Authority for Taxation. In order to achieve this, the research relied on the analysis of its variables as a main tool for collecting data and information. The results showed that there is a positive and positive effect of information technology on tax evasion. The impact of information technology on increasing tax revenues and reducing the phenomenon of tax evasion In the performance of the research sample, the research sought to highlight the importance of tax information technology through its data and information to the tax administration for the purpose of completing the process Taxpayers for persons subject to income ta
... Show MoreSome problems want to be solved in image compression to make the process workable and more efficient. Much work had been done in the field of lossy image compression based on wavelet and Discrete Cosine Transform (DCT). In this paper, an efficient image compression scheme is proposed, based on a common encoding transform scheme; It consists of the following steps: 1) bi-orthogonal (tab 9/7) wavelet transform to split the image data into sub-bands, 2) DCT to de-correlate the data, 3) the combined transform stage's output is subjected to scalar quantization before being mapped to positive, 4) and LZW encoding to produce the compressed data. The peak signal-to-noise (PSNR), compression ratio (CR), and compression gain (CG) measures were used t
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