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What are Stochastic Processes? Stochastic processes are mathematical models used to describe the random evolution of systems over time. They are widely employed in various fields such as finance, engineering, biology, and physics. In essence, stochastic processes involve the study of uncertain events that unfold sequentially, with outcomes influenced by probability. At the core of stochastic processes lies the idea that future events cannot be determined with absolute certainty but can be described in terms of probabilities. This inherent randomness sets stochastic processes apart from deterministic processes, where outcomes are precisely...