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Stochastic means non-deterministic. This means that something contains an inherent degree of randomness. For more detail, you should consult a dictionary or more detailed literature on probability theory.
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What is a stochastic error?
In a statistical model, variations in the dependent variable can be attributed to independent variables. However, there is a random element that is not accounted for and this is the stochastic error.
What is the definition of the stochastic process?
The definition to the term "Stochastic Process" is: A statistical process involving a number of random variables depending on a number variable. Which in most cases, is time.
What is the major difference between a mathematical model and an econometric model?
Mathematical model is exact in nature.it has Beta zero and Beta one and no stochastic or disturbance variables. Econometric model represents omitted variable, error in measurement and stochastic variables.
What is stochastic error term?
A Stochastic error term is a term that is added to a regression equation to introduce all of the variation in Y that cannot be explained by the included Xs. It is, in effect, a symbol of the econometrician's ignorance or inability to model all the movements of the dependent variable.
What is the role of the stochastic error term in regression analysis?
Regression analysis is based on the assumption that the dependent variable is distributed according some function of the independent variables together with independent identically distributed random errors. If the error terms were not stochastic then some of the properties of the regression analysis are not valid.
When was Stochastic Models created?
Stochastic Models was created in 1985.
What has the author G Adomian written?
G. Adomian has written: 'Stochastic systems' -- subject(s): Stochastic differential equations, Stochastic systems
What is the difference between stochastic and random?
Wikipedia states that stochastic means random. But there are differences depending on the context. Stochastic is used as an adjective, as in stochastic process, stochastic model, or stochastic simulation, with the meaning that phenomena as analyzed has an element of uncertainty or chance (random element). If a system is not stochastic, it is deterministic. I may consider a phenomena is a random process and analyze it using a stochastic simulation model. When we generate numbers using a probability distribution, these are called random numbers, or pseudo random numbers. They can also be called random deviates. See related links.
What has the author C W Gardiner written?
C. W. Gardiner has written: 'Handbook of Stochastic Methods' 'Stochastic methods' -- subject(s): Stochastic processes 'Quantum noise' -- subject(s): Stochastic processes, Quantum optics, Josephson junctions
What has the author Quan-Lin Li written?
Quan-Lin Li has written: 'Constructive computation in stochastic models with applications' -- subject(s): Stochastic processes, Stochastic models
What is the difference between Monte Carlo and stochastic methods of simulation?
monte carlo simulation is used to give solutions of deterministic problems whereas stochastic simulation is used for stochastic problems.
Where can you download Stochastic Filtering With Applications in Finance by Ramaprasad Bhar free pdf?
You can download free copy of Stochastic Filtering by Ramaprasad Bhar here. /forexebooks.co.in/stochastic-filtering-applications-finance-ebook/
What has the author Hiroaki Morimoto written?
Hiroaki Morimoto has written: 'Stochastic control and mathematical modeling' -- subject(s): Stochastic control theory, Optimal stopping (Mathematical statistics), Stochastic differential equations
What is stochastic calculus?
The mathematical theory of stochastic integrals, i.e. integrals where the integrator function is over the path of a stochastic, or random, process. Brownian motion is the classical example of a stochastic process. It is widely used to model the prices of financial assets and is at the basis of Black and Scholes' theory of option pricing.
What is the difference between 'stochastic' and 'deterministic'?
These words are used to describe ways of modeling or understanding the world. "Stochastic" means that some elements of the model or description are thought of as being random. (The word "Stochastic" is derived from an ancient Greek word for random.) A model or description that has no random factors, but conceivably could, is called "deterministic." For example, the equation Q = VC where Q = charge, V = voltage, and C = capacitance, is a deterministic physical model. One stochastic version of it would be Q = VC + e where e is a random variable introduced to account for or characterize the deviations between the actual charges and the values predicted by the deterministic model.
What is variable demand stochastic demand deterministic demand?
stochastic demand is random demand. it is determined by predictable actions and a random element.
How would you explain to an idiot what 'Stochastic Processes' are?
Buying a lottery ticket daily is deterministic. Winning a lottery and getting a prize is Stochastic.
