Stochastic modeling

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Stochastic Modeling

Any of several methods for measuring the probability of distribution of a random variable. That is, a stochastic model measures the likelihood that a variable will equal any of a universe of amounts. It is used in technical analysis to predict market movements. Insurance companies also use stochastic modeling to estimate their assets and liabilities because, due to the nature of the insurance business, these are not known quantities.

Stochastic modeling.

Stochastic modeling is a statistical process that uses probability and random variables to predict a range of probable investment performances.

The mathematical principles behind stochastic modeling are complex, so it's not something you can do on your own.

But based on information you provide about your age, investments, and risk tolerance, financial analysts may use stochastic modeling to help you evaluate the probability that your current investment portfolio will allow you to meet your financial goals.

Appropriately enough, the term stochastic comes from the Greek word meaning "skillful in aiming."

References in periodicals archive ?
In summary, the information-rich environment created by stochastic modeling also helps the corporate decision maker account for the needs of important audiences whose concerns drive the loss reserving process--regulators and rating agencies concerned with solvency, shareholders and investors concerned with investment return, and board members concerned with making the best decision possible about the use of capital.
This data set offers the unique opportunity to evaluate the result of the dispersion and stochastic modeling.
Stochastic modeling is an alternative method for providing valid precision estimates with relative ease.
Collaboration enables stochastic modeling of device degradation and reliability through industry leading Sentaurus Device TCAD simulator
Organized by the Stochastic Modeling Laboratory at the Technical U.
Nelson, Stochastic Modeling, Dover, New York (2002).
Articles in the issue include 1) "Distribution of Clinical Covariates at Detection of Cancer: Stochastic Modeling and Statistical Inference," 2) "Planning Public Health Programs and Scheduling: Breast Cancer," 3) "Planning of Randomized Trials," 4) "The Use of Modeling to Understand the Impact of Screening on U.
Her research, stochastic modeling and data assimilation techniques for application to a variety of hydrologic and agricultural problems have helped crop growth in all agricultural systems.
California) offers a textbook for a first course in probability, with an emphasis on stochastic modeling.
The textbook is for a one-year undergraduate course introducing scientific programming and stochastic modeling to science, engineering, or business students who have completed or are concurrently taking a first-year university-level calculus course.
He specializes in asset allocation, liability-driven investing (LDI), asset/liability management, investment policy setting, and financial stochastic modeling.

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