Everyone working in related fields from applied mathematicians to
statisticians to actuaries and operations researchers will find this a
brilliantly useful practical text. The book presents applications of
semi-Markov processes in finance, insurance and reliability, using
real-life problems as examples. After a presentation of the main
probabilistic tools necessary for understanding of the book, the authors
show how to apply semi-Markov processes in finance, starting from the
axiomatic definition and continuing eventually to the most advanced
financial tools.