STAT4061 Probability and Stochastic Processes

6 points

If this unit does not have an online alternative, then students who are presently unable to enter Western Australia and whose studies would be delayed by an inability to complete this unit, should contact the unit coordinator (details given on this page) to ascertain, on an individual case-by-case basis, if alternate arrangements can be made to support their study in this unit.

Not available in 2021UWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Not available in 2021UWA (Perth)Online timetabled 100% Online Unit. NO campus face-to-face attendance is required to complete this unit. All study requirements are online only. Unit includes some synchronous components, with a requirement for students to participate online at specific times.
Details for undergraduate courses
  • Level 4 elective
  • Honours option in Mathematics and Statistics [Bachelor of Science (Honours)]
This unit introduces advanced notions and applications of probability and random processes. A selection of topics from the following list are covered: time series, Markov processes, diffusion processes, Brownian motion, point processes, Ito calculus and stochastic differential equations and Martingales. Some of these topics require advanced probability theory which, if necessary, are covered first, and emphasise complex modelling suitable for many application areas (e.g. Black-Scholes option pricing theory in finance) and involves extensive numerical computation.
Students are able to (1) apply concepts of probability theory and different stochastic models to analyse problems arising in a variety of applied fields; (2) have knowledge of advanced mathematical and probabilistic techniques, and adapt their applications to different situations; (3) communicate effectively the acquired skills to others, including presenting analytic results and their applications in a logical and coherent fashion; and (4) undertake continuous learning in probability modelling and its applications.
Indicative assessments in this unit are as follows: (1) assignments and (2) tests. Further information is available in the unit outline.

Supplementary assessment is not available in this unit.
Unit Coordinator(s)
Professor Tony Pakes
Unit rules
STAT3061 Random Processes and their Applications orSTAT3401 Advanced Data Analysis
Contact hours
3 hours per week
Unit will be changed from Semester 1 to Semester 2 from 2022. 
  • The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
  • All students are responsible for identifying when they need assistance to improve their academic learning, research, English language and numeracy skills; seeking out the services and resources available to help them; and applying what they learn. Students are encouraged to register for free online support through GETSmart; to help themselves to the extensive range of resources on UWA's STUDYSmarter website; and to participate in WRITESmart and (ma+hs)Smart drop-ins and workshops.
  • Unit readings, including any essential textbooks, are listed in the unit outline for each unit, one week prior the commencement of study. The unit outline will be available via the LMS and the UWA Handbook one week prior the commencement of study. Reading lists and essential textbooks are subject to change each semester. Information on essential textbooks will also be made available on the Essential Textbooks. This website is updated regularly in the lead up to semester so content may change. It is recommended that students purchase essential textbooks for convenience due to the frequency with which they will be required during the unit. A limited number of textbooks will be made available from the Library in print and will also be made available online wherever possible. Essential textbooks can be purchased from the commercial vendors to secure the best deal. The Student Guild can provide assistance on where to purchase books if required. Books can be purchased second hand at the Guild Secondhand bookshop (second floor, Guild Village), which is located on campus.