In this tutorial we continue our program of clarifying chaos by examining t
he relationship between chaotic and stochastic processes. To do this, we co
nstruct chaotic analogs of stochastic processes, stochastic differential eq
uations, and discuss estimation and prediction models. The conclusion of th
is section is that from the composition of simple nonlinear periodic dynami
cal systems arise chaotic dynamical systems, and from the time-series of ch
aotic solutions of finite-difference and differential equations are formed
chaotic processes, the analogs of stochastic processes. Chaotic processes a
re formed from chaotic dynamical systems in at least two ways. One is by th
e superposition of a large class of chaotic time-series. The second is thro
ugh the compression of the time-scale of a chaotic time-series. As stochast
ic processes that arise from uniform random variables are not constructable
, and chaotic processes are constructable, we conclude that chaotic process
es are primary and that stochastic processes are idealizations of chaotic p
rocesses.
Also, we begin to explore the relationship between the prime numbers and th
e possible role they may play in the formation of chaos.