Continuous Time Model

A Continuous Time Model is a way to represent processes that change smoothly over time, rather than in discrete steps. Imagine tracking the movement of a car; instead of noting its position every minute, you describe its location at every possible moment. This approach helps us analyze things like financial markets, population growth, or physical systems by providing a more detailed picture of change. It allows for the use of mathematical tools to predict future behavior and understand complex dynamics, reflecting how real-world phenomena often evolve seamlessly rather than in abrupt intervals.