Learn stochastic processes with online courses and programs
Stochastic processes are mathematical models that describe random, uncertain phenomena evolving over time, often used to analyze and predict probabilistic outcomes. Learn stochastic processes with online courses delivered through edX.
What are stochastic processes?
Stochastic processes help make sense of randomness. A stochastic process is a section of probability theory dealing with phenomena that is influenced by random factors and evolves over time. It provides a mathematical framework for studying systems and phenomena that exhibit random variations over time or space. It’s used in a variety of fields, such as science, mathematics, finance, engineering, and economics.
Probability distribution helps us make logical conclusions about things that seem random. Theories of stochastic processes help us build in standard deviations and understand both discrete-time and continuous-time processes as well as stationarity.
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Stochastic processes course curriculum
Stochastic processes have applications in a diverse array of fields, providing learners with the opportunity to explore a wide range of subjects. Courses in this domain may delve into topics such as probability management, mathematical methods, the fundamentals of trading and technical analysis, or manufacturing systems.
In addition to these foundational concepts, learners can explore probability theory further, which encompasses key elements like probability distributions, random variables, expectations, and variance. Other areas of study might involve Poisson processes, a common stochastic process used to model events occurring randomly in time or space. Learners can also examine Brownian motion, a continuous-time stochastic process, and investigate its properties, such as self-similarity, sample paths, and applications in finance and physics.
For those seeking more advanced knowledge, courses may cover stochastic differential equations, a fundamental tool in mathematical modeling and finance. Advanced topics can also delve into Martingale theory, which finds extensive use in probability theory, finance, and optimization. Stochastic calculus, another possible subject, plays a crucial role in pricing financial derivatives and analyzing complex stochastic systems.
Learn about how to use these processes to supplement your knowledge of probability theory. edX offers a variety of educational opportunities for learners interested in studying these topics, as well as a host of other disciplines. A boot camp can provide flexible hands-on learning for those who want to upskill quickly, while executive education courses are designed for busy professionals. You can also pursue a more comprehensive curriculum in a bachelor’s degree program or, for more advanced learners, a master’s degree program. Find the right learning path for you.
Explore stochastic processes jobs
The theory of stochastic processes unlocks a variety of applications where probability and random numbers can help solve large problems. The characteristic functions of random processes find applications in fields as diverse as biology and economics. Your knowledge and expertise can unlock research and applications in a wide variety of areas, such as:
Finance and trading: Use stochastic processes to model asset price movements, help quantify and manage financial risks, and optimize investment portfolios.
Computer science: Commonly employs stochastic processes in simulations to model complex systems and evaluate their behavior under uncertain conditions, and to analyze the performance of computer networks, distributed systems, and queueing systems.
Biology and medicine: Can use stochastic models to describe the dynamics of biological populations, model the spread of diseases, or understand the behavior of biomolecules, such as DNA and proteins.
Physics: Stochastic processes play a role in understanding the behavior of particles in gasses, liquids, and solids at the molecular level, while quantum processes can also find modeling applications using stochastic differential equations.
Economics: In macroeconomics, stochastic processes account for uncertainty and shocks in the economy, while economic models incorporate stochastic processes to analyze investment decisions, economic growth, and financial markets.
Social Sciences: Stochastic models serve as valuable tools in psychological research for understanding decision making under uncertainty and modeling behavior.
Are you ready to expand your knowledge in this field? Start with courses available through edX.
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