The basic idea of quantum mechanics is that the property of any system can be in a state of superposition of various possibilities. This state of superposition is also known as wave function and it evolves linearly with time in a deterministic way in accordance with the Schrodinger equation. However, when a measurement is carried out on the system to determine the value of that property, the system instantaneously transforms to one of the eigen states and thus we get only (...) a single value as outcome of the measurement. Quantum measurement problem seeks to find the cause and exact mechanism governing this transformation. In an attempt to solve the above problem, in this paper, we will first define what the wave function represents in real world and will identify the root cause behind the stochastic nature of events. Then, we will develop a model to explain the mechanism of collapse of the quantum mechanical wave function in response to a measurement. In the process of development of model, we will explain Schrodinger cat paradox and will show how Born’s rule for probability becomes a natural consequence of measurement process. (shrink)