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Improved Euler’s Method

Improved Euler’s Method. 3 조 강다연 김만선 박진원 박효식. CONTENTS. Euler’s method Improved Euler’s method Problem 1 & 2 Summary Application. Euler’s Method. Consider the initial value problem . Approximation by a rectangle. Improved Euler’s Method.

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Improved Euler’s Method

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  1. Improved Euler’s Method 3조 강다연 김만선 박진원 박효식

  2. CONTENTS • Euler’s method • Improved Euler’s method • Problem 1 & 2 • Summary • Application

  3. Euler’s Method Consider the initial value problem Approximation by a rectangle

  4. Improved Euler’s Method A more accurate way of approximating the integral is by finding the area of a trapezoid obtained by joining the points

  5. Improved Euler’s Method Approximation by a trapezoid

  6. Problem 1 Compute the improved Euler`s method approximation to the solution (x)= of at using step size of ,,,

  7. Problem 1

  8. Problem 1

  9. Problem 1 Improved Euler’s Value

  10. Problem 1 Improved Euler h=1 Improved Euler h=

  11. Problem 1 Improved Euler h= Improved Euler h=

  12. Problem 1 Euler’s vs Improved Euler’s

  13. Problem 1 Euler’s vs Improved Euler’s

  14. Problem 1 Euler & Improved Euler h=1 Euler & Improved Euler h=

  15. Problem 1 Improved Euler’s vs Euler’s () Randomly

  16. Problem 2 Use the improved Euler’s method with tolerance of to approximate the solution to the initial value problem at

  17. Problem 2

  18. Problem 2

  19. Problem 2 Bisection()

  20. Problem 2 Ten Power () Random ()

  21. Summary • Euler vs Improved Euler Improved Euler is much superior (less iteration) → We can justify Big Oh notation

  22. Euler method for the Black-Scholes Model

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