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1 parent cf50e14 commit b34b636Copy full SHA for b34b636
lectures/smoothing.md
@@ -558,10 +558,10 @@ $$
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$$
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These are $2$ equations in the $3$ unknowns
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-$\bar c, b(1), b(2)$.
+$\bar c, b(1), b(2)$
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-To get a third equation, we assume that at time $t=0$, $b_0$
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-is the debt due; and we assume that at time $t=0$, the Markov
+To get a third equation, we assume that at time $t=0,$ $b_0$
+is debt due; and we assume that at time $t=0,$ the Markov
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state $s_0 =1$
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(We could instead have assumed that at time $t=0$ the Markov state $s_0 = 2$, which would affect our answer as we shall see)
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