In its revised new edition, this book covers Markov chains in discrete and continuous time, Poisson processes, renewal processes, martingales and mathematical finance. Offers many examples and more than 300 carefully chosen exercises for better understanding.
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From the reviews of the second edition:
“The book consists of six chapters and 265 pages. ... Each chapter has a chapter summary before the exercises. The chapter summary restates the theorems of each section and adds short new commentary. ... With its many examples and applications, chosen from the broad experience of the author, this book is an excellent text for a course in applied probability.” (Myron Hlynka, Mathematical Reviews, February, 2014)
“This is the second edition of introductory text book on stochastic processes by Richard Durrett. ... The new edition contains many new examples and problems. The chapters have been reorganized to facilitate the learning process. ... The new edition makes the topic of stochastic processes even more accessible for undergraduate students and people coming from fields of applications.” (H. M. Mai, Zentralblatt MATH, Vol. 1244, 2012)
Richard Durrett received his Ph.D. in Operations Research from Stanford in 1976. He taught at the UCLA math department for nine years and at Cornell for twenty-five before moving to Duke in 2010. He is the author of 8 books and almost 200 journal articles, and has supervised more that 40 Ph.D. students. Most of his current research concerns the applications of probability to biology: ecology, genetics, and most recently cancer.
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