2.8 Stochastic Processes

Question 1

What is a difference equation?

Answer 1

Question 2

Answer 2

see ‘answer to difference eq’ document in desktop

Question 3

Answer 3

see ‘mark process answer doc’ in desktop

Question 4

What is a stochastic process?

Answer 4

A sequence of events in which the outcome at any stage depends on some probability

Question 5

What is a markov process?

Answer 5

A stochastic process where:
The number of possible outcomes or states is finite
The outcome at any stage depends only on the outcome of the previous stage
The probabilities are constant over time