The binomial, geometric, and negative binomial distributions. Definition and description of Markov chains. Transition matrices, state transition diagrams, Chapman-Kolmogorov equations, first passage times, sojourn times. Classification of states and steady state behavior. Applications of discrete time Markov chains.
Inventory models Production process models.
The Poisson process. Definition and description of the Poisson process. The Poisson, exponential, and Erlang distributions. Modeling of arrival processes. Birth and death models.