Regime-Switching Temperature Dynamics Model for Weather Derivatives

<table class="fixed-width table-group" id="tab3"><tr><td><table class="table"><colgroup><col style="width:4.18em"/><col style="width:4.61em"/><col style="width:6.70em"/></colgroup><tr><td class="thead-hr" colspan="3"><hr/></td></tr><tr class="thead"><td class="align_left"> </td><td class="align_center"><span style="width: 12.6404ptpx;"><svg height="15.2296pt" id="M72" style="vertical-align:-3.6382pt" version="1.1" viewbox="-0.0498162 -11.5914 12.6404 15.2296" width="12.6404pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M565 434L556 448L482 423L322 189L287 373C280 410 261 448 236 448C207 448 161 415 110 338L131 317C160 355 181 374 193 374C204 374 208 366 217 330C230 279 247 185 259 116L50 -175C18 -223 29 -260 41 -278H51C97 -198 207 -33 270 57L313 -165C328 -235 349 -261 376 -261S445 -244 510 -150L487 -127C444 -178 423 -186 411 -186C402 -186 398 -177 387 -130C371 -62 349 39 332 135C390 217 524 392 565 434Z" id="g113-244"></path></g><g transform="matrix(.0091,0,0,-0.0091,7.568,-5.741)"><path d="M414 144C384 79 371 75 317 75H135L276 221C367 316 408 376 408 465C408 570 327 635 237 635C179 635 131 609 100 575L42 494L67 471C94 510 138 565 205 565C277 565 321 517 321 435C321 348 258 270 195 195C146 137 88 81 33 26V0H411C423 44 433 88 446 135L414 144Z" id="g50-51"></path></g></svg></span></td><td class="align_center"> P value </td></tr><tr><td class="thead-hr" colspan="3"><hr/></td></tr><tr><td class="align_left">Bole</td><td class="align_center"> 230.3531</td><td class="align_center"> 8.9851 <svg height="11.9413pt" id="M73" style="vertical-align:-0.3499002pt" version="1.1" viewbox="-0.0498162 -11.5914 35.2617 11.9413" width="35.2617pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M528 54L331 254L528 455L492 493L294 291L96 493L60 455L257 254L60 54L96 16L294 217L492 16L528 54Z" id="g117-42"></path></g><g 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<div><svg height="15.2296pt" id="M71" style="vertical-align:-3.6382pt" version="1.1" viewbox="-0.0498162 -11.5914 12.6404 15.2296" width="12.6404pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M565 434L556 448L482 423L322 189L287 373C280 410 261 448 236 448C207 448 161 415 110 338L131 317C160 355 181 374 193 374C204 374 208 366 217 330C230 279 247 185 259 116L50 -175C18 -223 29 -260 41 -278H51C97 -198 207 -33 270 57L313 -165C328 -235 349 -261 376 -261S445 -244 510 -150L487 -127C444 -178 423 -186 411 -186C402 -186 398 -177 387 -130C371 -62 349 39 332 135C390 217 524 392 565 434Z" id="g113-244"></path></g><g transform="matrix(.0091,0,0,-0.0091,7.568,-5.741)"><path d="M414 144C384 79 371 75 317 75H135L276 221C367 316 408 376 408 465C408 570 327 635 237 635C179 635 131 609 100 575L42 494L67 471C94 510 138 565 205 565C277 565 321 517 321 435C321 348 258 270 195 195C146 137 88 81 33 26V0H411C423 44 433 88 446 135L414 144Z" id="g50-51"></path></g></svg> statistics of final residuals of Bole and Tamale.</div>

International Journal of Stochastic Analysis

Regime-Switching Temperature Dynamics Model for Weather Derivatives

Table 3