I am trying to understand various types of stochastic processes. In order for that to happen, I needed some simple examples to be built so that I can build an intuition about them.

According to the book of Hwei Hsu (Chapter-5, Page-161, "Description of a Random Process"), I can design the following simple and intuitive examples myself using only a standard die:

2. Continuous parameter (or Continuous-time) process


4. Continuous-state process

Suppose, we roll a die either a finite ($n$) number of times or an infinite number of times and plot $\frac{e^{X(t)}}{1000}$ as a graph like the following:

enter image description here

My first question is: are my examples correct? If not, kindly help me to make the necessary corrections.

Secondly, what would be the example of (2)?


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.