... economic regimes and a stochastic convenience yield is embedded in the spot price. The second approach is based on a multi-factor model (MFM) featuring three correlated stochastic factors. Design/methodology/approach The two proposed approaches are analysed in terms of parameter-estimation accuracy...

... uniformly. Assuming that θ is uniformly distributed over Θ, equation (1.1) is further simplified to: Statistical inference Parameter estimation Simulation Hidden Markov models Supply chain management Stochastic models E ( θ | Y 0 = y 0 ) = ∑ i = 1 r θ...