### Book

## Stochastic Processes

This book provides a rigorous yet accessible introduction to the theory of stochastic processes. A significant part of the book is devoted to the classic theory of stochastic processes. In turn, it also presents proofs of well-known results, sometimes together with new approaches. Moreover, the book explores topics not previously covered elsewhere, such as distributions of functionals of diffusions stopped at different random times, the Brownian local time, diffusions with jumps, and an invariance principle for random walks and local times.

Supported by carefully selected material, the book showcases a wealth of examples that demonstrate how to solve concrete problems by applying theoretical results. It addresses a broad range of applications, focusing on concrete computational techniques rather than on abstract theory. The content presented here is largely self-contained, making it suitable for researchers and graduate students alike.

We consider triangular arrays of Markov chains that converge weakly to a diffusion process. Second order Edgeworth type expansions for transition densities are proved. The paper differs from recent results in two respects. We allow nonhomogeneous diffusion limits and we treat transition densities with time lag converging to zero. Small time asymptotics are motivated by statistical applications and by resulting approximations for the joint density of diffusion values at an increasing grid of points.

We consider triangular arrays of Markov chains that converge weakly to a diffusion process. We prove Edgeworth-type expansions of order *o(n-1-**δ),δ>0*, for transition densities. For this purpose we apply the parametrix method to represent the transition density as a functional of densities of sums of independent and identically distributed variables. Then we apply Edgeworth expansions to the densities. The resulting series gives our Edgeworth-type expansion for the Markov chain transition density.

Over the last 50 years in different areas such as decision theory, information processing, and data mining, the interest to extend probability theory and statistics has grown. The common feature of those attempts is to widen frameworks for representing different kinds of uncertainty: randomness, imprecision, vagueness, and ignorance. The scope is to develop more flexible methods to analyze data and extract knowledge from them. The extension of classical methods consists in “softening” them by means of new approaches involving fuzzy set theory, possibility theory, rough sets, or having their origin in probability theory itself, like imprecise probabilities, belief functions, and fuzzy random variables. Data science aims at developing automated methods to analyze massive amounts of data and extract knowledge from them. In the recent years the production of data is dramatically increasing. Every day a huge amount of data coming from everywhere is collected: mobile sensors, sophisticated instruments, transactions, Web logs, and so forth. This trend is expected to accelerate in the near future. Data science employs various programming techniques and methods of data wrangling, data visualization, machine learning, and probability and statistics. The soft methods proposed in this volume represent a suit of tools in these fields that can also be useful for data science. The volume contains 65 selected contributions devoted to the foundation of uncertainty theories such as probability, imprecise probability, possibility theory, soft methods for probability and statistics. Some of them are focused on robustness, non-precise data, dependence models with fuzzy sets, clustering, mathematical models for decision theory and finance.

In a previous letter (Alcaraz F C *et al* 2014 *J. Phys. A: Math. Theor.* 47 212003) we have presented numerical evidence that a Hamiltonian expressed in terms of the generators of the periodic Temperley–Lieb algebra has, in the finite-size scaling limit, a spectrum given by representations of the Virasoro algebra with complex highest weights. This Hamiltonian defines a stochastic process with a *Z**N* symmetry. We give here analytical expressions for the partition functions for this system which confirm the numerics. For *N* even, the Hamiltonian has a symmetry which makes the spectrum doubly degenerate leading to two independent stochastic processes. The existence of a complex spectrum leads to an oscillating approach to the stationary state. This phenomenon is illustrated by an example.

Let k be a field of characteristic zero, let G be a connected reductive algebraic group over k and let g be its Lie algebra. Let k(G), respectively, k(g), be the field of k- rational functions on G, respectively, g. The conjugation action of G on itself induces the adjoint action of G on g. We investigate the question whether or not the field extensions k(G)/k(G)^G and k(g)/k(g)^G are purely transcendental. We show that the answer is the same for k(G)/k(G)^G and k(g)/k(g)^G, and reduce the problem to the case where G is simple. For simple groups we show that the answer is positive if G is split of type A_n or C_n, and negative for groups of other types, except possibly G_2. A key ingredient in the proof of the negative result is a recent formula for the unramified Brauer group of a homogeneous space with connected stabilizers. As a byproduct of our investigation we give an affirmative answer to a question of Grothendieck about the existence of a rational section of the categorical quotient morphism for the conjugating action of G on itself.

Let G be a connected semisimple algebraic group over an algebraically closed field k. In 1965 Steinberg proved that if G is simply connected, then in G there exists a closed irreducible cross-section of the set of closures of regular conjugacy classes. We prove that in arbitrary G such a cross-section exists if and only if the universal covering isogeny Ĝ → G is bijective; this answers Grothendieck's question cited in the epigraph. In particular, for char k = 0, the converse to Steinberg's theorem holds. The existence of a cross-section in G implies, at least for char k = 0, that the algebra k[G]G of class functions on G is generated by rk G elements. We describe, for arbitrary G, a minimal generating set of k[G]G and that of the representation ring of G and answer two Grothendieck's questions on constructing generating sets of k[G]G. We prove the existence of a rational (i.e., local) section of the quotient morphism for arbitrary G and the existence of a rational cross-section in G (for char k = 0, this has been proved earlier); this answers the other question cited in the epigraph. We also prove that the existence of a rational section is equivalent to the existence of a rational W-equivariant map T- - - >G/T where T is a maximal torus of G and W the Weyl group.