Stochastic models

Stochastic models

Liability-matching models that assume that the liability payments and the asset cash flows are uncertain. Related: Deterministic models.

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.
References in periodicals archive ?
They limit their account stochastic models in discrete time because the probabilistic machinery is simpler and they can discuss some of the key problems of pricing and hedging in financial derivatives right away.
New stochastic models will be developed to link the underlying biological and chemical dynamics of the biomanufacturing processes (cell-level dynamics) with the financial trade-offs in terms of yield, quality, operating costs, and failure risks (manufacturing system-level dynamics).
The results generate conclusions about power market certainty models [8], interval models [24], and stochastic models [25].
In this communication the stochastic models of solar flare duration as solar activity have been investigated.
The researchers create stochastic models to analyze viral dynamics and to understand how protective or preventative drug treatment prior to or immediately following exposure can act to reduce risk of infection under various scenarios.
Stochastic models allow for individual variation to be incorporated.
Dentcheva is broadening the scope of the journal to include more work on stochastic optimization and control, as well as research that incorporates probability and stochastic models.
s model (1995) along with a budgetary constraint where the demand follows several stochastic models.
of North Carolina at Chapel Hill) presents a text designed for use in a two-course sequence in stochastic models, with an emphasis on modeling and analysis.
When imitational modeling is applied, stochastic models of quality level are required for separate parameters, their groups and for entire product [2,6].
Modeling of such phenomena can be achieved by stochastic models.
Milliman applied stochastic models for equity and bond returns.

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