This textbook is intended for one-semester courses in stochastic processes for students familiar with elementaiy probability theory and calculus. The objectives of the book are to introduce students to the standard conr,epts and methods of stochastic modeling, to illustrate the rich diversity of applications of stochastic processes in the applied sciences, and to provide exercises in the application of simple stochastic analysis to realistic problems. This revised edition includes twice the number of exercises as the f irst edition, many of which are applications problems, and several sections have been rewritten for clarity.

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PRAISE FOR THE SECOND EDITION "This book is a valuable resource for anyone studying combustion processes."--David L. Liscinsky, United Technologist Research Center, in AIAA JOURNAL

"This is an excellent text-book....The narrative is clear, careful and detailed but, at the same time, designed to draw (not to bore) the reader in. The main strengths, in my opinion, are the wealth of convincing applications, which are discussed at some, but not too much length after each bit of theoretical development, and the large number of exercises given at the ends of sections, not just at the ends of chapters."--Martin Crowder, University of Surrey, Guildford, in THE STATISTICIAN

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