The Fokker-Planck Equation (Cont'd)

The Fokker-Planck Equation describes how the probability of a system's state changes over time, especially when random fluctuations are involved. Think of it as a tool that predicts how particles, molecules, or even financial assets spread out or move in response to both systematic forces and random 'kicks' or noise. It’s used in fields like physics, chemistry, and finance to understand processes where uncertainty and randomness play a key role, helping us see how likely the system is to be in a particular state at any given moment.