Basic classes of stochastic processes. Poisson (regular, compound, compound surplus, and non-homogenous) and renewal processes with applications in simple queuing systems and Actuarial Science. Discrete and continuous time Markov chains. Birth-Death and Yule processes. Branching models of population growth processes. Actuarial risk models; simulation. Arithmetic and geometric Brownian motions, and applications of these processes such as in computation of resident fees for continuing care retirement communities, and pricing of financial instruments.

Pre-requisites: STAT301