stochastisk
Stochastisk is the term used in Norwegian and Swedish to describe phenomena, models, or variables that involve randomness. In English, the equivalent term is stochastic. The central idea is that outcomes cannot be predicted with certainty, even if a complete statistical description is available. A stochastic model uses random variables to represent uncertain quantities and often describes how these quantities evolve over time or across situations.
A key concept is the stochastic process, a family of random variables indexed by time or another
Stochastic models are widely used across disciplines. In finance, they underpin asset price dynamics and risk
The term emphasizes randomness and uncertainty rather than determinism. Stochastic models describe distributions of possible outcomes