Random Sums of Random Variables as Economic Processes: Sales

Abstract

The cumulation of a sum of N observations from a distribution of Y where N and Y are linearly related random variables may serve as a model for the description of sales, insurance payments, changes in stock prices and other economic processes. The expectation and variance of such a sum and other results are presented with an empirical example. This model may prove useful for description of various flow magnitudes per interval of time that are, in turn, random cumulations of random outcomes.