Stochastic simulation

A stochastic simulation is a simulation that traces the evolution of variables that can change stochastically (randomly) with certain probabilities. A stochastic simulation is a simulation that traces the evolution of variables that can change stochastically (randomly) with certain probabilities. With a stochastic model we create a projection which is based on a set of random values. Outputs are recorded and the projection is repeated with a new set of random values of the variables. These steps are repeated until a sufficient amount of data is gathered. In the end, the distribution of the outputs shows the most probable estimates as well as a frame of expectations regarding what ranges of values the variables are more or less likely to fall in. Stochastic originally meant 'pertaining to conjecture'; from Greek stokhastikos 'able to guess, conjecturing': from stokhazesthai 'guess'; from stokhos 'a guess, aim, target, mark'. The sense of 'randomly determined' was first recorded in 1934, from German Stochastik.