stochastic

stochastic definition - business

stochastic

Describing a variable or a system's output that is subject to chance or probability. In a stochastic system a change in one variable may have a less than predictable effect on another variable. For example, a company that is considering doubling spending on quality control will be uncertain of the extent to which quality will improve. Compare deterministic.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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