Article history: Received 20 February 2009 Accepted 21 April 2010 Available online 27 April 2010

In this work we apply the FDA proposed precision criteria necessary for pediatric pharmacokinetic studies (Wang et. al., 2012) as a stopping criteria for a model based adaptive optimal design (MBAOD) of an adult to children pharmacokinetic bridging study. We demonstrate the power of the MBAOD compared to both traditional designs as well as non-adaptive optimal designs.

We consider the problem of dynamically hedging the profits of a corporation when these profits are correlated with returns in the financial markets. In particular, we consider the general problem of simultaneously optimizing over both the operating policy and the hedging strategy of the corporation. We discuss how different informational assumptions give rise to different types of hedging and s...