Markov Chains, Discrete Time

A sequence {Xn}n≥0 of random variables with values in a set E is called a discrete-time stochastic process with state space E. According to such a definition, sequences of independent and identically distributed random variables are stochastic processes. However, in order to introduce more variability, one may wish to allow for some dependence on the past in the manner of deterministic recurrence equations.