Brownian ratchet a heat bath in that they undergo random Brownian motion with a mean kinetic energy that is determined by the temperature. The device is imagined as being small enough that the impulse from a single molecular collision can turn the paddle. Although such collisions would tend to turn the rod in either direction with equal probability, the pawl allows the ratchet to rotate in one direction only. The net effect of many such random collisions would seem to be that the ratchet rotates continuously in that direction. The ratchet's motion then can be used to do work on other systems,
Geometric Brownian motion above: formula_27. import numpy as np import pandas as pd import matplotlib.pyplot as plt mu=1 n=50 dt=0.1 x0=100 x=pd.DataFrame() np.random.seed(1) for sigma in np.arange(0.8,2,0.2): x.columns=np.arange(0.8,2,0.2) plt.plot(x) plt.legend(x.columns) plt.xlabel('t') plt.ylabel('X') plt.title('Realizations of Geometric Brownian Motion with different variances\n mu=1') plt.show() GBM can be extended to the case where there are multiple correlated price paths. Each price path follows the underlying process where the Wiener processes are correlated such that formula_31 where formula_32. For the multivariate case, this implies that Geometric Brownian motion is used to model stock prices in the Black–Scholes model and is the most widely used model of stock