Downloaded By: [Limnios, Nikolaos] At: 16:01 16 February 2008 Communications in Statistics—Theory and Methods, 37: 1306–1322, 2008 Copyright © Taylor & Francis Group, LLC ISSN: 0361-0926 print/1532-415X online DOI: 10.1080/03610920701713328 Applied Probability On Discrete Time Semi-Markov Chains and Applications in Words Occurrences OURANIA CHRYSSAPHINOU 1 , MARGARITA KARALIOPOULOU 1 , AND NIKOLAOS LIMNIOS 2 1 Department of Mathematics, University of Athens, Greece 2 Laboratoire de Mathematiques Appliquées, Université de Technologie de Compiègne, France Let a discrete time semi-Markov process Z  with finite state space an alphabet  Defining the process U  to be the backward recurrence time of the process Z   we study the Markov process Z U    We give its transition probabilities of first and higher order, the limiting distribution, and the stationary distribution. Using this Markov process we construct a k-dimensional process  Z U   and we study its basic properties. As an application we consider a finite set of words W = w 1 w 2 w of equal length k which are produced under the semi-Markovian hypothesis and we focus on the waiting time for the first word occurrence from the set W . The corresponding probability distribution, the generating function, as well as the mean waiting time and variance are obtained. Keywords Backward recurrence times; Discrete time semi-Markov process; First occurrence; Waiting time; Words. Mathematics Subject Classification Primary 60K15; Secondary 60K20. 1. Introduction Let us consider a sequence of outcomes Z  generated by a semi-Markov chain with finite state space =  1   2 < We study the joint distribution of the semi-Markov process Z  and its corresponding backward recurrence time U   The Markov chain Z U   is the basic process for our study and plays an important role in the theory and applications of discrete time semi-Markov processes. Received June 15, 2006; Accepted July 31, 2007 Address correspondence to Nikolaos Limnios, Université de Technologie de Compiègne, Laboratoire de Mathematiques Appliquées Centre de Recherches de Royallieu, BP 20529, Compiègne Cedex 60205, France; E-mail: Nikolaos.Limnios@utc.fr 1306