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.
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.
In the paper we discussed the stochastic modelling and simulation of an action consisting of random events which appear in time and space, with a similarity to a neurophysiological experiment.
stochastic modelling, phasic analysis, event time series regression analysis, and event time series nonlinear dynamical analysis.
Stochastic modelling is applied to identify and characterize event sequences, and to identify temporal dependencies in event sequences.
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.
Although the book provides extensive review for alternative stochastic processes and some applications to actuarial mathematics, it does not cover many recent developments in stochastic modelling in insurance and finance [such as Dorherty and Garven (1986) in Journal of Finance, Cummins (1988) in Journal of Finance, Shimko (1992) in Journal of Financial and Quantitative Analysis, Briys and Varenne (1997) in Journal of Risk and Insurance, etc.
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.
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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