stochastic is a term used to describe outcomes based on uncertain relationships. The process of change in a variable resulting from change in a parameter. For example, option adjusted spread measures of yield and Monte Carlo models of interest rate risk are stochastic measures. A method of modeling changes that allows for a range of possible outcomes. Sometimes called probabilistic. The opposite of deterministic.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). stochastic. Retrieved September 22, 2026, from http://smartdefine.org/stochastic/definitions/1164217 |
| Chicago | Barry Goldsmith. 2010. "stochastic" http://smartdefine.org/stochastic/definitions/1164217 (accessed September 22, 2026). |
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| MLA | Barry Goldsmith. "stochastic" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/stochastic/definitions/1164217> |