Brownian Motion and the Wiener Process

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Core Idea

Brownian motion (the Wiener process) is a continuous-time stochastic process W(t) with W(0) = 0, independent increments, stationary Gaussian increments (W(t) - W(s) ~ N(0, t-s)), and almost surely continuous sample paths. It is the canonical building block of stochastic calculus and the continuous-time analogue of a symmetric random walk. The Wiener measure on the space of continuous functions C([0,∞)) provides the rigorous measure-theoretic foundation.

Explainer

Brownian motion is the foundational object of continuous-time probability. Physically, it models the erratic movement of a pollen grain suspended in water — the phenomenon Robert Brown observed in 1827 and Einstein explained in 1905. Mathematically, it is a stochastic process W(t) defined for t ≥ 0, characterized by four properties: W(0) = 0, independent increments over non-overlapping time intervals, Gaussian increments with W(t) - W(s) ~ N(0, t-s) for t > s, and continuous sample paths almost surely. Norbert Wiener gave the first rigorous construction (1923), which is why the process is also called the Wiener process.

The construction is non-trivial. You need to produce a probability measure on the infinite-dimensional space C([0,∞)) of continuous functions. One approach uses the Kolmogorov extension theorem: the finite-dimensional distributions are multivariate Gaussians (determined by the mean function μ(t) = 0 and covariance function K(s,t) = min(s,t)), and the extension theorem guarantees a consistent probability measure on infinite product spaces. Continuity of paths then follows from the Kolmogorov continuity criterion, using the fact that E[|W(t) - W(s)|⁴] = 3(t-s)² gives sufficient moment control.

From your study of martingales, Brownian motion provides a rich supply of continuous-time martingales. W(t) itself is a martingale (its expected future value given the present is the present value). W(t)² - t is also a martingale — the quadratic variation of Brownian motion grows linearly, and subtracting t compensates for this growth. More generally, exp(θW(t) - θ²t/2) is a martingale for any real θ (the exponential martingale). These martingale properties are the engine behind optional stopping arguments, change-of-measure techniques, and the entire apparatus of stochastic calculus.

The sample paths of Brownian motion are almost surely continuous but almost surely nowhere differentiable. The increments W(t+h) - W(t) have standard deviation √h, which goes to zero (continuity) but not fast enough relative to h for a derivative to exist (the ratio √h/h = 1/√h diverges). This pathological roughness — Brownian paths have Hausdorff dimension 3/2 — is precisely why Brownian motion cannot be analyzed using ordinary calculus and demands the development of Itô's stochastic integral, the next major topic in this course.

Practice Questions 4 questions

Prerequisite Chain

Counting to 10Counting to 20Understanding ZeroThe Number ZeroCounting to FiveOne-to-One CorrespondenceCombining Small Groups Within 5Addition Within 10Addition Within 20Two-Digit Addition Without RegroupingTwo-Digit Addition with RegroupingAddition Within 100Repeated Addition as MultiplicationMultiplication Facts Within 100Division as Equal SharingDivision as Grouping (Measurement Division)Division: Grouping (Repeated Subtraction) ModelDivision: Fair Sharing ModelDivision as Equal SharingDivision as GroupingBasic Division FactsDivision Facts Within 100Two-Digit by One-Digit DivisionDivision with RemaindersRemainders and Quotients in DivisionDivision Word ProblemsIntroduction to Long DivisionFactors and MultiplesPrime and Composite NumbersEquivalent FractionsRelating Fractions and DecimalsDecimal Place ValueReading and Writing DecimalsComparing and Ordering DecimalsAdding and Subtracting DecimalsMultiplying DecimalsDividing DecimalsDividing FractionsMixed Number ArithmeticOrder of OperationsInteger Order of OperationsVariable ExpressionsCombining Like TermsOne-Step EquationsTwo-Step EquationsSolving Multi-Step EquationsEquations with Variables on Both SidesAngle Pairs: Complementary, Supplementary, and VerticalParallel Lines and TransversalsCorresponding AnglesAlternate Interior AnglesTriangle Angle Sum TheoremExterior Angle TheoremTriangle Inequality TheoremSimilar Triangles: AA SimilaritySimilar Triangles: SSS and SAS SimilarityProportions in Similar TrianglesRight Triangle Trigonometry IntroductionTrigonometric Ratios ReviewRadian MeasureConverting Between Degrees and RadiansThe Unit CircleGraphing Sine and CosineGraphing Tangent and Reciprocal Trigonometric FunctionsDerivatives of Trigonometric FunctionsAntiderivativesIndefinite IntegralsBasic Integration RulesRiemann SumsDefinite Integral DefinitionProbability Density Functions and Continuous DistributionsCumulative Distribution FunctionsContinuous Random VariablesNormal DistributionBrownian Motion and the Wiener Process

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