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stochastic process
This term is primarily used in mathematics, statistics, and physics to describe systems that evolve over time with an element of randomness. It is a technical term of art; using it in a casual conversation would likely be perceived as overly formal or academic. It differs from a deterministic process, where the future state is entirely predictable given the current state.
In practical application, it is frequently used in quantitative finance and machine learning to model uncertainty. While the word "stochastic" is a synonym for "random," the phrase "stochastic process" specifically implies a sequence of events or a time-series rather than a single random occurrence.
Meanings
A collection of random variables representing the evolution of some system over time, where the future state is determined by both predictable patterns and a random element.
The stock market is often modeled as a stochastic process to account for unpredictable price fluctuations.