Business and Personal Finance Dictionary

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• STOCHASTIC MODELING
  
  Stochastic modeling is a statistical process that uses probability and random variables to predict a range of probable investment performances. The mathematical principles behind stochastic modeling are complex, however, so it's not something you can do on your own. But based on information you provide about your age, retirement plans, and risk tolerance, a number of online financial sites perform calculations that can help you evaluate the probability that your investment portfolio will allow you to meet your financial goals. Appropriately enough, the term stochastic comes from the Greek word meaning "skillful in aiming."
  
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