In this new edition the authors have added new material and included more applications in all the chapters, revising the explanation and presentation of some topics, increasing the number of exercises, and achieving a greater independence of chapters as far as possible.

By reducing mathematical detail and focusing on real-world applications, this book provides engineers with an easy-to-understand overview of stochastic modeling. An entire chapter is included on how to set up the problem, and then another complete chapter presents examples of applications before doing any math. A previously unpublished computational method for solving equations related to Markov processes is added. The book shows how to add costs or revenues to the basic probability structures without much additional effort. In addition, numerous examples are included that show how the theory...