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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.