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Emphasizing key theoretical concepts while incorporating real-world applications, Probability and Stochastic Processes presents a rigorous approach to probability and uses it as a foundation for understanding concepts and examples related to stochastic processes. Extensively classroom-tested, the material is both motivating and comprehensive. Engaging real-world applications and novel examples from business, mathematical finance, and engineering shed light on the topics relevance in modern research. Topics of coverage are mathematically rigorous but also incorporate traditional applied concepts so that upper-undergraduate and graduate students can gain an intuitive sense of theory and its practice.