Class summary: Friday, 4/18

As a final example on continuous distributions, I proved that the exponential distribution satisfies P(T>s+t|P(T>s) = P(T>t) for all positive s,t. This property is called the "no memory" property since it can be interpreted as saying that an expoentially distributed r.v. has no memory of its past, or shows no signs of aging.

I began the discussion of the so-called Poisson process, which represents an interesting and important example of a "stochastic process" involving both continuous and discrete random variables. The Poisson process can be thought of as a sequence of points placed randomly (according to some rules) on a time axis. It serves as a model for real-world processes such as the burning out and replacing of light bulbs; the arrival of customers at a store; or the arrival of buses at a bus stop.

Associated with such a process are two types of random variables, one discrete, the other continuous.

The Poisson process is characterized by the following properties: These properties turn out to be equivalent, i.e., a process that satisfies (I) automatically satisfies (II), and vice versa, and they define the Poisson process uniquely.


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