Intro to Probabilistic Methods
A stochastic process is a collection of random variables that represent a system evolving over time, where each random variable corresponds to a particular time point. This concept is crucial in modeling situations where outcomes are uncertain and can change in unpredictable ways, making it valuable in various fields including finance, physics, and biology. Stochastic processes can exhibit a range of behaviors depending on their properties, such as whether they are discrete or continuous, stationary or non-stationary, and memoryless or Markovian.
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