[8 marks] Consider a discrete time stochastic process {Xn,n 2 0j defined by the equation with...
2. Consider an urn that contains red and green balls. At time 0 there are k balls with at least one ball of each color. At time n we draw out a ball chosen at random.We return it to the urn and add one more of the color chosen. Let X be the fraction of red balls at time n. Show that Xn is a martingale with respect to the filtration (X0,Xi, ,Xn). At time n there are nk balls,...