stochastic

  

Definition

Situations or models containing a random element, hence unpredictable and without a stable pattern or order. All natural events are stochastic phenomenon. And businesses and open economies are stochastic systems because their internal environments are affected by random events in the external environment. Stochastic is often taken to be synonymous with probabilistic but, strictly speaking, stochastic conveys the idea of (actual or apparent) randomness whereas probabilistic is directly related to probabilities and is therefore only indirectly associated with randomness. Greek for, skillful in aiming or guessing. See also Markov process.

Use stochastic in a sentence

  • Sometimes you will find yourself in a situation where the outcome can be stochastic and you need to try and prepare for all variables.

    4 people found this helpful
  • If you are trying to predict something but it is stochastic you just have to go with what you think is the most likely outcome.

    5 people found this helpful
  • Sometimes statistics or data are stochastic and show some outliers but there can still be important trends to examine in data.

    10 people found this helpful
Show more usage examples...

Related Videos




http://www.businessdictionary.com/definition/stochastic.html

Have a question about stochastic? Ask for help in the
Community
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z