Stochastic process is a concept that forms the base of a lot of statistical methods used in different fields of study. This is a simple yet very powerful idea that can help us capture the random nature of problems and formulate them in mathematical notation and hence use them in different applications.
This process has many applications and is readily used in the finance, physics and mathematics. Did you know that stochastic probabilities are used in many asset pricing models and also in the heat diffusion equation? The stochastic process is the way of representing and analyzing the random behavior in the stock prices or in heat diffusion.