Itô calculus
Itô calculus is an important part of mathematics that helps us understand how different kinds of things like stock prices, temperatures, or even the growth of a population can change over time. To do this, it combines two branches of mathematics called calculus and probability.
Calculus studies how things change. You can use calculus to find out how quickly something like a population is growing or how fast a ball is travelling.
Probability lets us figure out how likely it is that something will happen. For example, if a family has three children, probability can tell us what the chances are that they have two boys and one girl.
Itô calculus combines these two branches of mathematics to figure out how something is likely to change over time. It helps us figure out things like how fast a stock price is likely to rise or how quickly the temperature is likely to drop. By combining calculus and probability, itô calculus can give us a better understanding of how things are likely to change.
Calculus studies how things change. You can use calculus to find out how quickly something like a population is growing or how fast a ball is travelling.
Probability lets us figure out how likely it is that something will happen. For example, if a family has three children, probability can tell us what the chances are that they have two boys and one girl.
Itô calculus combines these two branches of mathematics to figure out how something is likely to change over time. It helps us figure out things like how fast a stock price is likely to rise or how quickly the temperature is likely to drop. By combining calculus and probability, itô calculus can give us a better understanding of how things are likely to change.
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