Review of binomial and negative binomial distributions; continuous random variables; uniform, exponential, and gamma distributions; conditional probability; properties of conditional expectation; stochastic processes; finite-dimensional distributions, Poisson approximation; Poisson measures; counting processes, Markov queues, customer time in queues; steady-state distributions; applications. Corequisite: One of MATH 209, 214, or 217. Notes: (1) Credit can be obtained in at most two of STAT 181, STAT 265, or STAT 281. (2) Credit cannot be obtained in STAT 281 if credit has already been obtained in STAT 371.