Situations or models containing a randomelement, hence unpredictable and without a stablepattern ororder. All natural events are stochastic phenomenon. And businesses and open economies are stochastic systems because their internal environments are affected by random events in the external environment. Stochastic is often taken to be synonymous with probabilistic but, strictly speaking, ... Read more
Sometimes you will find yourself in a situation where the outcome can be stochastic and you need to try and prepare for all variables.