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88-524 Stochastic Processes

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A stochastic process as per the course 88-524 Stochastic Processes is any process describing the evolution in time of a random phenomenon. As per the mathematical point of view, the theory of stochastic processes was introduced around 1950.

Some basic types of stochastic processes include the following as per the course 88-524 Stochastic Processes:

  • Markov processes
  • Poisson processes (such as radioactive decay)
  • Time series, with the index variable referring to time

An example for the same:

A stochastic process is a pool of random variables {Xθ}, where the parameter θ is described from an index set Θ. Now, let's say the index set is "time". One example of a stochastic process that evolves over time is the number of customers (X) in a checkout line.

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