We are interested in calculating the probabilities associated with a stochastic process (Xn). Let's spend a few minutes talking about the basic concepts of probability. If you are already familiar with these concepts, you may want to skip this section; otherwise, it will be in your interest to deepen the basic knowledge needed to understand how probabilities are calculated.
The a priori probability that a given event (E) occurs is the ratio between the number (s) of favorable cases of the event itself and the total number (n) of the possible cases, provided all considered cases are equally probable. This can be summarized in the following formula:
Let's look at a simple example.
What is the probability that a thrown ...
