Physical Sciences and Mathematics Commons^™

Stochastic Processes Model And Its Application In Operations Research, Chun Yuan Hsu

All Graduate Plan B and other Reports, Spring 1920 to Spring 2023

Just as the probability theory is regarded as the study of mathematical models of random phenomena, the theory of stochastic processes plays an important role in the investigation of random phenomena depending on time. A random phenomenon that arises through a process which is developing in time and controlled by some probability law is called a stochastic process. Thus, stochastic processes can be referred to as the dynamic part of the probability theory. We will now give a formal definition of a stochastic process.

Let T be a set which is called the index set (thought of as time), then, …