Markov Chain. Classification of States and Decomposition of State Space. The Long Term
Probability Distribution and Modelling of a Markov Chain. Time-homogeneous Markov Jump
Process. Poisson Process. Birth and Death Processes. Kolmogorov Differential Equations. Structure of
a Markov Jump Process. Time-in Homogeneous Markov Jump Process. Application of Brownian
Motion. A survival model. Sickness and Death model. Marriage Model. Sickness and Death with
Duration Dependence.
Basic Principles of Stochastic Modelling. Filtration. Simulation of a Stochastic Model and its
Applications.
