CHAPTER 8 – Stochastic Analysis

This chapter describes stochastic analysis. Model structures that accommodate stochastic properties exhibit a spectrum running from completely deterministic to completely nondeterministic. On the one hand, stochastic data can be input to a deterministic model that produces identical output for repeated runs using the same input data. On the other hand, stochastic properties can be built into a model that produces typical output for repeated runs using the same input cues. Many systems are impacted by stochastic components. Systems modelers have sought innovative ways to introduce stochastic time series into their models. Models are capable of realistic response whether empirical and analytical probability distributions are used to simulate primary time series.