MS&E 121
7. Inventory Management and the Principle of Dynamic Programming
Introduction to Stochastic Modeling
December 14, 2012
Prof. Peter W. Glynn
Page 1 of 4
1. (H&L 19.611.) The campus bookstore must decide how many textbooks to order for a course
tha

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 5
April 24, 2013
Assignment 5 - Due Tuesday, February 19
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including posting

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
1.Introduction and Review
December 12, 2012
Page 1 of 7
1. (Ross, EX. 1.42) There are three coins in a box. One is a two-headed coin, another is a fair
coin, and the third is a biased coin

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 5 Solutions
February 20, 2013
Assignment 5 Solutions - Due Tuesday, February 19
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribu

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 6
March 3, 2013
Assignment 6 - Due Tuesday, March 5
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including posting to n

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 1 Solutions
January 24, 2013
Assignment 1 Solutions - Due Tuesday, April 5 (In class)
Note: The material is for the personal use of students enrolled in MS&E 121. Any further
dis

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 6
March 8, 2013
Assignment 6 - Solutions
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including posting to non-Stanford

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
6. Queueing Theory
December 14, 2012
Page 1 of 13
1. (H&L 17.6-10)The Centerville International Airport has two runaways, one used exclusively
for takeos and the other exclusively for landi

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
4. Discrete-time Makov Chains
December 14, 2012
Page 1 of 14
1. (Ross, Ex 4.11 ) Three white and three black balls are distributed in two urns in such a way
that each contains three balls.

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 3
February 11, 2013
Assignment 3 - Due Tuesday, February 5
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including posti

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 2
January 16, 2013
Assignment 2 - Due Tuesday, January 22
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including postin

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 1
January 4, 2013
Page 1 of 1
Assignment 1 - Due Tuesday, April 5 (In class)
Note: The material is for the personal use of students enrolled in MS&E 121. Any further
distribution

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
1. Suppose that the transaction processing times for
with the density function
0,
3
f (x) = 44 x3 (x2 + 1),
0,
2.Computer Exprimentation
December 14, 2012
Page 1 of 10
each bank customer ar

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 2
January 16, 2013
Assignment 2 - Due Tuesday, January 22
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including postin

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 4
February 6, 2013
Assignment 4 - Due Tuesday, February 12
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including posti

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 3
January 31, 2013
Assignment 3 - Due Tuesday, February 5
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including postin

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 3
January 31, 2013
Assignment 3 - Due Tuesday, February 5
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including postin

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 1
January 8, 2013
Assignment 1 - Due Tuesday, January 15
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including posting

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
3. Forecasting and Regression Models
December 14, 2012
Page 1 of 9
1. Suppose that Y is a rv with the density function
fY (y ) =
2
,
y3
0,
y1
otherwise
exponentially distributed with mean 1

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
5. Continuous-time Markov Chains
December 14, 2012
Page 1 of 10
1. Consider a post oce with two clerks. Three people, A, B , and C , enter simultaneously.
A and B go directly to the clerks,

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 7
March 15, 2013
Assignment 7
This assignment is optional
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including postin

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 4 Solutions
February 15, 2013
Assignment 4 Solutions
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including posting to

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 4 - Solutions
April 27, 2011
Page 1 of 9
Assignment 4 - Solutions
1. (a) In the following table, you can nd the price of stock in each that in dirent scenarios
day 0
day 1
105
10

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 4
April 27, 2011
Page 1 of 4
Assignment 4 - Due Thursday, May 5 (In class)
Attach a printout of all the MATLAB code.
1. In this problem, we will price two dierent nancial options

MS&E 121
Introduction to Stochastic Modeling
Prof. Peter W. Glynn
Assignment 4
April 24, 2013
Assignment 4 - Due Tuesday, February 12
Note: This material is for the personal use of students enrolled in MS&E 121. Any further
distribution, including posting