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‫Welcome back.

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‫So in the previous video, we computed our second slope for our wrong Akutan method, using the state

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‫values that they themselves were computed using the first slope.

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‫And now, since we have our second slope, let's see what we're going to do with it again, I'm going

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‫to use P as our example, St..

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‫So now what we're going to do with the second slope, we're going to apply it, but we're going to apply

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‫it here at the original point at time T. So the second slope, it will be no different from the first

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‫slope.

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‫So it won't be a tangential graph at this point.

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‫It will be some kind of other slope.

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‫So let's say that it's like this.

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‫So this is the second slope here that you found here, but you're going to apply it still at your original

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‫present state values, so that time equals T and then what you will do with this second slope.

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‫Again, you're going to project it until time T plus T over to until here.

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‫So this is your second slope and this point here will now be another state to value at T plus T.

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‫S over to.

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‫And we're going to call it piece of cake plus one at time, t plus tips over, too, but now we're going

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‫to put here, too, in order to let you know that this new state value that you have here, this one,

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‫it was computed using slope to not slope one, but slope to.

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‫So this number here, it's not squared, it's to tell you that we use slope two to compute this new

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‫state that is at time T plus it's over two in this point here.

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‫And mathematically, it will look like this.

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‫Piece of cake, plus one at a time t plus tips over to.

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‫That is computed using the second slope equals P Sarp K and now be careful.

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‫The important thing here is to note that you're still using the present state.

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‫You are not using this data value that you computed using slope one, no, you are using the original

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‫present state piece up.

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‫Why?

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‫Because you're taking this second slope, but you're applying it here at K at times Coastie at the original

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‫place from which you started.

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‫So now from this point, you are projecting your second slope and therefore here you will still have

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‫your present state piece cake, the one that you had at the very beginning.

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‫And then plus.

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‫And this is your second slope now, right?

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‫It's this one here, and then you multiply it by T.

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‫S over to.

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‫And why because you're projecting it until this point here and remember, this was teams over two,

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‫and so that's how you compute the state value using the second slope and that's how you do it for all

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‫the other states.

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‫So just like you did a year, but now instead of this one here, you will have two and then you will

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‫have your second slope here.

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‫So you write down all your new states in this form, so all your new states that you compute using the

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‫second slope, you will do it like this.

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‫So you start with your use date and then you go all the way down until you reach your state, so the

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‫same template, the same blueprint, the same format, and then guess what you're going to do next?

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‫You're going to take your new states, your new state values that you computed using the second slope's

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‫that you had.

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‫And you're going to put all the state values into these equations, and when you do that, you get your

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‫third slope's, your 12 new third slope's, and if we take our state as an example, then we're going

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‫to call our third slope of this state like this P dot, sub K plus one.

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‫Sup t plus T.

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‫S over to.

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‫Because even the third slope was computed using the state values that themselves were computed using

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‫the second slope, but these state values, they were also positioned at time T plus T over two.

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‫So that's why the sub index here is T plus two over two as well.

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‫But we had this notation for our second slope, which was here.

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‫So in order not to confuse them, I'm going to put an asterisk here.

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‫So now you know that the slope with an asterisk and subindex deposits over to that's your third slope.

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‫Our first slope was like this simply p dot k.

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‫That was our second slope and that would be our third slope and that notation you can apply to all the

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‫other states as well.

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‫So in the next video, we're going to see what we are going to do with the third slope, and then we're

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‫going to compute a fourth slope and then that will be it.

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‫Then we compute the weighted average and apply it to compute our new state value.

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‫At time equals T plus.

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‫So here, but first we need to get our fourth slope and we'll do that in the next video.

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‫Thank you very much.

