Predicting Stock Prices

t. represents the . state of the system. at time . t, so it’s only possible values are 0 to M. The system is observed at particular points of time, labeled t= 0 to M. Thus, the . stochastic process {X. t} = {X. 0, X. 1, X. 2,…} provides a mathematical representation of how the status of the physical system evolves over time . 1 ................
................