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  2. First-hitting-time model - Wikipedia

    en.wikipedia.org/wiki/First-hitting-time_model

    [2] [3] [4] Modeling the probability of financial ruin as a first passage time was an early application in the field of insurance. [5] An interest in the mathematical properties of first-hitting-times and statistical models and methods for analysis of survival data appeared steadily between the middle and end of the 20th century.

  3. First passage percolation - Wikipedia

    en.wikipedia.org/wiki/First_passage_percolation

    The random variable () is interpreted as the time or the cost needed to traverse edge . Since each edge in first passage percolation has its own individual weight (or time) we can write the total time of a path as the summation of weights of each edge in the path. [3]

  4. Infinitesimal generator (stochastic processes) - Wikipedia

    en.wikipedia.org/wiki/Infinitesimal_generator...

    The mean first passage time satisfies =. This can be used to calculate, for example, the time it takes for a Brownian motion particle in a box to hit the boundary of the box, or the time it takes for a Brownian motion particle in a potential well to escape the well.

  5. Inverse Gaussian distribution - Wikipedia

    en.wikipedia.org/wiki/Inverse_Gaussian_distribution

    This distribution appears to have been first derived in 1900 by Louis Bachelier [6] [7] as the time a stock reaches a certain price for the first time. In 1915 it was used independently by Erwin Schrödinger [4] and Marian v. Smoluchowski [5] as the time to first passage of a Brownian motion.

  6. Hitting time - Wikipedia

    en.wikipedia.org/wiki/Hitting_time

    The first exit time (from A) is defined to be the first hit time for S \ A, the complement of A in S. Confusingly, this is also often denoted by τ A. [1] The first return time is defined to be the first hit time for the singleton set {X 0 (ω)}, which is usually a given deterministic element of the state space, such as the origin of the ...

  7. Bernoulli process - Wikipedia

    en.wikipedia.org/wiki/Bernoulli_process

    A Bernoulli process is a finite or infinite sequence of independent random variables X 1, X 2, X 3, ..., such that . for each i, the value of X i is either 0 or 1;; for all values of , the probability p that X i = 1 is the same.

  8. Feynman–Kac formula - Wikipedia

    en.wikipedia.org/wiki/Feynman–Kac_formula

    The Feynman–Kac formula, named after Richard Feynman and Mark Kac, establishes a link between parabolic partial differential equations and stochastic processes.In 1947, when Kac and Feynman were both faculty members at Cornell University, Kac attended a presentation of Feynman's and remarked that the two of them were working on the same thing from different directions. [1]

  9. M/G/1 queue - Wikipedia

    en.wikipedia.org/wiki/M/G/1_queue

    where as above is the Laplace–Stieltjes transform of the service time distribution function. This relationship can only be solved exactly in special cases (such as the M/M/1 queue ), but for any s {\textstyle s} the value of ϕ ( s ) {\textstyle \phi (s)} can be calculated and by iteration with upper and lower bounds the distribution function ...