Definition, Meaning & Synonyms
stochastic
Adjective
/stəˈkæs.tɪk/
Definition
Involving a random variable or variables; probabilistic.
Examples
- The stock market is known for its stochastic behavior, where prices fluctuate unpredictably.
- Stochastic modeling is widely used in finance to account for the inherent risks associated with investments.
- Weather forecasting uses stochastic methods to predict likely scenarios based on random variables.
Meaning
The term stochastic is used to describe processes that are inherently random or unpredictable. It often refers to systems or models that incorporate elements of uncertainty or variability.
Synonyms
- Random
- Probabilistic
- Uncertain
