Random Walk
8.1 Introduction
A random walk is derived from a sequence of Bernoulli trials. It is used in many fields including thermodynamics, biology, physics, chemistry, and economics where it is used to model fluctuations in the stock market.
Consider a Bernoulli trial in which the probability of success is p and the probability of failure is 
. Assume that the experiment is performed every T time units, and let the random variable 
denote the outcome of the kth trial. Furthermore, assume that the probability mass function (PMF) of is as follows: ...
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