STOCHASTIC MODELING AND CONTROL Edited by Ivan Ganchev Ivanov STOCHASTIC MODELING AND CONTROL Edited by Ivan Ganchev Ivanov Stochastic Modeling and Control http://dx.doi.org/10.5772/2567 Edited by Ivan Ganchev Ivanov Contributors J Linares-Pérez, R Caballero-Águila, I García-Garrido, Uwe Küchler, Vyacheslav A Vasiliev, Serena Doria, Ricardo López-Ruiz, Jaime Sudo, David Opeyemi, Tze Leung Lai, Tiong Wee Lim, Jingtao Shi, Ivan Ivanov, Sergey V Sokolov, Nicholas A Nechval, Maris Purgailis, Ming Xu, Jiamin Zhu, Tian Tan, Shijie Xu, Vladimir Šimović, Siniša Fajt, Miljenko Krhen, Raúl Fierro, Ying Shen, Hui Zhang Published by InTech Janeza Trdine 9, 51000 Rijeka, Croatia Copyright © 2012 InTech All chapters are Open Access distributed under the Creative Commons Attribution 3.0 license, which allows users to download, copy and build upon published articles even for commercial purposes, as long as the author and publisher are properly credited, which ensures maximum dissemination and a wider impact of our publications After this work has been published by InTech, authors have the right to republish it, in whole or part, in any publication of which they are the author, and to make other personal use of the work Any republication, referencing or personal use of the work must explicitly identify the original source Notice Statements and opinions expressed in the chapters are these of the individual contributors and not necessarily those of the editors or publisher No responsibility is accepted for the accuracy of information contained in the published chapters The publisher assumes no responsibility for any damage or injury to persons or property arising out of the use of any materials, instructions, methods or ideas contained in the book Publishing Process Manager Dimitri Jelovcan Typesetting InTech Prepress, Novi Sad Cover InTech Design Team First published November, 2012 Printed in Croatia A free online edition of this book is available at www.intechopen.com Additional hard copies can be obtained from orders@intechopen.com Stochastic Modeling and Control, Edited by Ivan Ganchev Ivanov p cm ISBN 978-953-51-0830-6 Contents Preface IX Chapter Design of Estimation Algorithms from an Innovation Approach in Linear Discrete-Time Stochastic Systems with Uncertain Observations J Linares-Pérez, R Caballero-Águila and I García-Garrido Chapter On Guaranteed Parameter Estimation of Stochastic Delay Differential Equations by Noisy Observations Uwe Küchler and Vyacheslav A Vasiliev 23 Chapter Coherent Upper Conditional Previsions Defined by Hausdorff Outer Measures to Forecast in Chaotic Dynamical Systems 51 Serena Doria Chapter Geometrical Derivation of Equilibrium Distributions in Some Stochastic Systems 63 Ricardo López-Ruiz and Jaime Sudo Chapter Stochastic Modelling of Structural Elements 81 David Opeyemi Chapter Singular Stochastic Control in Option Hedging with Transaction Costs 103 Tze Leung Lai and Tiong Wee Lim Chapter Stochastic Control for Jump Diffusions 119 Jingtao Shi Chapter Iterations for a General Class of Discrete-Time Riccati-Type Equations: A Survey and Comparison 147 Ivan Ivanov Chapter Stochastic Observation Optimization on the Basis of the Generalized Probabilistic Criteria 171 Sergey V Sokolov Identifiability of Quantized Linear Systems 293 Author details Ying Shen China Mobile Group, Zhejiang Co., Ltd Huzhou Branch, Huzhou, China Hui Zhang* State Key Laboratory of Industrial Control Technology, Institute of Industrial Process Control, Department of Control Science and Engineering, Zhejiang University, Hangzhou, China Acknowledgement This work was supported by the Natural Science Foundation of China under Grand No 61174063 & 60736021 References Astrom, K J & Wittenmark, B (1994) Adaptive Control (2nd edition), Addison-Wesley Publishing Company, ISBN 0201558661, Boston, MA, USA Baram, Y & Kailath T (1988) Estimability and Regulability of Linear Systems IEEE Transactions on Automatic Control, vol 33, no 12, 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