Volume 3 of the second edition of the fully revised and updated Digital Signal and Image Processing using MATLAB®, after first two volumes on the “Fundamentals� and “Advances and Applications: The Deterministic Case�, focuses on the stochastic case. It will be of particular benefit to readers who already possess a good knowledge of MATLAB®, a command of the fundamental elements of digital signal processing and who are familiar with both the fundamentals of continuous-spectrum spectral analysis and who have a certain mathematical knowledge concerning Hilbert spaces. This volume is focused on applications, but it also provides a good presentation of the principles. A number of elements closer in nature to statistics than to signal processing itself are widely discussed. This choice comes from a current tendency of signal processing to use techniques from this field. More than 200 programs and functions are provided in the MATLAB® language, with useful comments and guidance, to enable numerical experiments to be carried out, thus allowing readers to develop a deeper understanding of both the theoretical and practical aspects of this subject.