MATH 340 - Stochastic Modeling in Business and Economics

Units: 3

Introduction to stochastic modeling with emphasis on application in business and economics. Discrete probability distributions including uniform, Bernoulli, binomial, hypergeometric, multinomial, and geometric. Random variables, expected value, and standard deviation. Joint distributions, conditional distributions, independence, and conditional expected value. Laws of large numbers. Discrete time Markov chains and martingales. Applications to include queuing models, cash and inventory management models, and stock option pricing. May not be taken for credit by students who have received credit for MATH 440 , MATH 441 , or MATH 571 .

Prerequisite(s): MATH 132 or MATH 160 or MATH 264 and MATH 315 or MATH 374 with a grade of C (2.0) or better.