Introduction to Probability and Stochastic Processes with Applications  (English, Paperback, Liliana Blanco Castaneda Et.al)

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.