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 ?
The REv tool will help inform reinsurance purchasing and writing decisions by opening up the possibility of stochastic modelling for companies that do not have a full internal model, or by working alongside one for those that do.
MG-ALFA was developed from scratch as an asset-liability modelling (ALM) system that is uniquely capable of meeting Solvency II requirements for enhanced stochastic modelling capability within a controlled but flexible environment.
of Bucharest) update considerably as well as translate their 1984 Elements of Stochastic Modelling (or rather the Romanian equivalent).
In the present paper the aim is to develop stochastic modelling and present new computational methods for the estimation of the spiking intensity characteristics.
Because the overall object of the book is to introduce the concepts of stochastic modelling to students and researchers, it is well suited for readers comfortable with graduate-level statistics and mathematics.
com/research/ggm7r7/deterministic) has announced the addition of Woodhead Publishing Ltd's new book "Deterministic Versus Stochastic Modelling in Biochemistry and Systems Biology" to their offering.
Stochastic modelling and operational optimization in district-heating systems.
Panjer, 1981, Stochastic Modelling of Interest Rates with Applications to Life Contingencies - Part II, Journal of Risk and Insurance, 48: 628-37.
Simulation of certain printing phases aimed to find a stabile production plan and calculation lead to stochastic modelling (Njezic et al.
This showed that the powerful combination of eValue's stochastic modelling and Financial Express' data and analytical capabilities would result in genuinely value adding solutions for clients.
Such an analysis requires stochastic modelling of loss liability cash flows and it can only be done within a stochastic framework.
Castrol was one of the first companies in its industry to employ ToolsGroup's stochastic modelling technology to manage the uncertainty in the supply chain.

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