Stochastic Processes

Introduction

Stochastic processes are mathematical objects used to model systems that evolve in time under the influence of randomness. From waiting for the next bus to stock market investments, stochastic processes are everywhere!

Key Concepts

• Random Variables: The foundation of stochastic processes, representing outcomes that are uncertain.
• Markov Chains: A type of stochastic process with the memoryless property, meaning the future state depends only on the current state.
• Brownian Motion: A continuous stochastic process essential in financial modeling and physics.

Explore More

Dive deeper into the world of stochastic processes by checking out our other resources:

• Markov Chains Explained
• Understanding Brownian Motion
• Probability Theory Basics

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