2090 CHAPTER 62. STOCHASTIC PROCESSES

By Proposition 62.7.8, Fσ∧τ ⊆Fσ , and so since A ∈Fσ was arbitrary,

E (X (τ) |Fσ )≥ X (σ ∧ τ) a.e.

Note that a function defined on a countable ordered set such as the integers or equallyspaced points is right continuous.

Here is an interesting lemma.

Lemma 62.7.16 Suppose E (|Xn|) < ∞ for all n, Xn is Fn measurable, Fn+1 ⊆ Fn forall n ∈ N, and there exist X∞ F∞ measurable such that F∞ ⊆ Fn for all n and X0 F0measurable such that F0 ⊇Fn for all n such that for all n ∈ {0,1, · · ·} ,

E (Xn|Fn+1)≥ Xn+1, E (Xn|F∞)≥ X∞.

Then {Xn : n ∈ N} is uniformly integrable.

Proof:E (Xn+1)≤ E (E (Xn|Fn+1)) = E (Xn)

Therefore, the sequence E (Xn) is a decreasing sequence bounded below by E (X∞) so it hasa limit. Let k be large enough that∣∣∣E (Xk)− lim

m→∞E (Xm)

∣∣∣< ε (62.7.26)

and suppose n > k. Then if λ > 0,∫[|Xn|≥λ ]

|Xn|dP =∫[Xn≥λ ]

XndP+∫[Xn≤−λ ]

(−Xn)dP

=∫[Xn≥λ ]

XndP+∫

(−Xn)dP−∫[−Xn<λ ]

(−Xn)dP

=∫[Xn≥λ ]

XndP−∫

XndP+∫[−Xn<λ ]

XndP

From 62.7.26,≤∫[Xn≥λ ]

XndP−∫

XkdP+ ε +∫[−Xn<λ ]

XndP

By assumption,E (Xk|Fn)≥ Xn

and so

≤∫[Xn≥λ ]

E (Xk|Fn)dP−∫

XkdP+ ε +∫[−Xn<λ ]

E (Xk|Fn)dP

=∫[Xn≥λ ]

XkdP−∫

XkdP+ ε +∫[−Xn<λ ]

XkdP

=∫[Xn≥λ ]

XkdP−∫

XkdP+ ε +∫[Xn>−λ ]

XkdP

=∫[Xn≥λ ]

XkdP+

(∫Ω

(−Xk)dP−∫[Xn>−λ ]

(−Xk)dP)+ ε

=∫[Xn≥λ ]

XkdP+∫[Xn≤−λ ]

(−Xk)dP+ ε =∫[|Xn|≥λ ]

|Xk|dP+ ε

2090 CHAPTER 62. STOCHASTIC PROCESSESBy Proposition 62.7.8, Fonz C Fog, and so since A € ¥Yg was arbitrary,E(X(t)|F%o) >X(OAT) ae. HtNote that a function defined on a countable ordered set such as the integers or equallyspaced points is right continuous.Here is an interesting lemma.Lemma 62.7.16 Suppose E (|X|) < °° for all n, X, is Fy measurable, Fy) C Fp forall n © N, and there exist Xu Foo measurable such that Fo GC Fy for all n and Xo Fomeasurable such that ¥y D Fy for all n such that for alln € {0,1,---},E (Xn|Frn41) = Xn+1s E (Xn|-Foo) > Xoo.Then {X, :n € N} is uniformly integrable.Proof:E (Xn) <E(E (Xn|-Fnvit)) = E (Xn)Therefore, the sequence E (X,,) is a decreasing sequence bounded below by E (X..) so it hasa limit. Let k be large enough thatlE (X,) — lim E (Xn)| <€ (62.7.26)m0and suppose n > k. Then if A > 0,| IX,|dP = | X,dP + (—X,) aP[|Xn|=A] [Xn>A] [Xn<—A]= | x,aP+ [ (-x,)dP— | (—Xn) dP[Xn 2A] Q [-Xn<A]= | X,dP — | X,dP + | X,dP[Xn>A] Q [-Xn<A]< | X,dP— | XaP+e+ | X,dPXp>A] Q [-Xn<A]E (Xt|Fn) > XnFrom 62.7.26,By assumption,and soIA| E(Xi|Fn)dP— f XaP+e+ | E (X¢|F_) dP[X, >A] Q [-Xn<Al]| X,dP — | XdP +e + / X,dP[Xn >A] Q [-Xn<Al]| X,dP — | XdP-+e+ / X,dP[Xn>A] Q [Xn>—A]| X,dP + (/ (-xaP— | (-X)aP +e[X,>A] Q [X,>—2][ X,dP + (-X,)dP+e= [ IX,|dP-+eJ[Xn 2A] J[Xn<—A] J||Xn|=A]