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Assessment of Stochastic Numerical Schemes for Stochastic Differential Equations with “White Noise” Using Itô’s Integral

Assessment of Stochastic Numerical Schemes for Stochastic Differential Equations with “White Noise” Using Itô’s Integral

Stochastic Differential Equations (SDEs) model physical phenomena dominated by stochastic processes. They represent a method for studying the dynamic evolution of a physical phenomenon, like ordinary or partial differential equations, but with an additional term called “noise” that represents a perturbing factor that cannot be attached to a classical mathematical …