stochastic process


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Related to stochastic process: Markov chain

sto·chas·tic pro·cess

a process that incorporates some element of randomness.
[G. stochastikos, pertaining to guessing, fr. stochazomai, to guess]
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The stochastic process X has a mean value [mu] and a covariance function
Zet X: [0, [infinity]) x [OMEGA] [right arrow] R be a differentiate stochastic process [theta], [sigma] [member of] [0,1], [theta] > [sigma], and f(t,s) = [[DELTA].
The first problem is to find a stochastic process [xi](t) whose forward and quadratic P-mean derivatives at each t are a(t, [xi](.
Unlike a deterministic process, a stochastic process does not produce a single predictable outcome, but the outcomes are restricted to certain sets of possibilities.
First, the reader will note that we studied a situation in which a landowner recognizes that the stochastic process that he is confronted with is iid in nature.
Assuming a constant convenience yield, c, interest rate, r, and volatility, [Sigma], for the rate of return on the spot commodity price, S, the stochastic process for the spot price under the equivalent martingale measure is given by:
Contrary to this general impression, the results of our study support the assumptions behind the model that the behaviour of stock prices at the Karachi Stock Exchange can be modelled by a time-continuous and continuous-variable stochastic process which has a log-normal distribution, and short-term predictions about the prices can be made by a careful estimation of model parameters.
n] be a differentiable stochastic process, a: [0, [infinity]) x [R.
0,n]) is a n-dimensional generalized stochastic process, see Section 3 for more details.
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