Introduction to Probability and Stochastic Processes With Applications - Softcover

9788126559145: Introduction to Probability and Stochastic Processes With Applications

Softcover

ISBN 10: 8126559144 ISBN 13: 9788126559145

Details Featuring intuitive and motivating discussions throughout, this book presents the basic concepts and methods of probability and introduces its multiple applications in diverse fields of study including mathematics, statistics, business and engineering. This book develops the basic concepts of probability, random variables, standard discrete and continuous distributions, joint probability distributions, laws of large numbers and the central limit theorem. Stochastic processes and its applications in queueing systems are addressed. Financial mathematics, including risk-neutral valuation and Black-Scholes formula are also addressed. The presented theory is illustrated with many current real world examples and applications. It reinforces and extends the material typically covered in introductory probability courses and is specifically written and accessible for students with diverse backgrounds and majoring in engineering, the applied sciences, business and finance, statistics, mathematics, and/or operations research. Key Features -- Includes examples, exercises and problems of various levels, all of which have been tested numerous times in the classroom.-- Provides readers with the needed background in probability concepts with a focus on stochastic modeling, such as queueing theory and financial mathematics.-- Features many examples derived from current real-world applications, illustrating that multiple phenomena occur in nature and can only be accurately modeled by means of probabilistic techniques. -- Contains advanced topics for further learning including Ito integrals, martingales and sigma algebras.-- Supplemented with a related Web site that contains PowerPoint slides for classroom use and additional exercises with solutions. A complete Instructor's Manual is also available.

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