Chapter 7    Probability, Random Variables, and Stochastic Processes

Dinesh Rajan

Southern Methodist University, Dallas, USA

7.1      Introduction to Probability

Probability theory essentially provides a framework and tools to quantify and predict the chance of occurrence of an event in the presence of uncertainties. Probability theory also provides a logical way to make decisions in situations where the outcomes are uncertain. Probability theory has widespread applications in a plethora of different fields such as financial modeling, weather prediction, and engineering. The literature on probability theory is rich and extensive. A partial list of excellent references includes [1, 5]. The goal of this chapter is to focus on the basic results ...

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