This book is a follow-up to our previous book βFundamentals of Probability
Theoryβ published in November, 2016 and it is meant for advanced undergradu-
ate level and graduate level students with basic knowledge in probability; also,
young researchers in other disciplines who want to brush-up their knowledge in
stochastic processes may find this book useful.
Theory of Stochastic Processes is one of the major and most important
offshoots of Probability Theory. It is a very rich subject with applications in
various branches of science, like Physics, Chemistry, Biology, Engineering and
others, and of social science, like Economics, Finance etc. It is an universal truth
that nothing remains constant in this world, but changes with time; and from
the modern view-point, these changes are never deterministic but influenced
by numerous chance factors, and hence, random in nature, governed by some
probability distribution. In other words, they are all, in some form or other,
stochastic processes. So for the scientific study of any phenomenon in this real
world, theory of stochastic processes offers the only recourse to rely on. Thus,
a sound understanding of this theory is of paramount importance.
In this book, we have tried to introduce the reader to the elegance of this
theory and to the immense possibilities it opens up. The reader is assumed
to be familiar with basic theory of modern probability, for which our previous
book may prove handy.