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Unformatted text preview: ns by hand.
My students tell me I should just use MATLAB and maybe I will for the next
The Markov chains chapter has been reorganized. The chapter on Poisson
processes has moved up from third to second, and is now followed by a treatment
of the closely related topic of renewal theory. Continuous time Markov chains
remain fourth, with a new section on exit distributions and hitting times, and
reduced coverage of queueing networks. Martingales, a di cult subject for
students at this level, now comes ﬁfth, in order to set the stage for their use in
a new sixth chapter on mathematical ﬁnance. The treatment of ﬁnance expands
the two sections of the previous treatment to include American options and the
the capital asset pricing model. Brownian motion makes a cameo appearance
in the discussion of the Black-Scholes theorem, but in contrast to the previous
edition, is not discussed in detail.
As usual the second edition has proﬁted from people who have told me about
typos over the last dozen years. If you ﬁnd...
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- Spring '10
- The Land