Students are asking for applications of discrete random walks in "real life" problems. By real life they mean financial applications and industry. We have two more weeks on this subjects and I'm willing to give up my theorectical lessons to keep their interest up. Can you suggest some reference about this? Applications using continuous random walks are possible as well, as I already prepared the lessons on embedding.
2026-04-02 19:18:58.1775157538
Applications of Random Walks for undergraduate students
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An interesting paper dealing with a random walk is M. Orkin and R. Kakigi, "What is the worth of free casino credit," The American Mathematical Monthly Vol. 102 (1995). This application is also discussed in the book Understanding Probability by Henk Tijms. Chapter 5 of this book gives several other applications of random walks that are of interest in finance.