random variable

(redirected from stochastic variable)
Also found in: Dictionary, Thesaurus, Financial, Encyclopedia, Wikipedia.

ran·dom var·i·a·ble

a variable that may assume a set of values, each with fixed probabilities or probability densities (its distribution), in such a way that the total probability assigned to the distribution is unity; the random variable may be discrete, continuous, or mixed discrete-continuous.

random

unplanned, without direction or purpose.

random assignment
random mating
where each member of the population has an equal opportunity of mating with every member of the opposite sex.
random numbers
a list of numbers obtained by a standard randomization procedure; used commonly to select individual animals from a pack.
random sample
see random sample.
random sampling
a procedure for selecting units from a group in such a way that each unit has an equal chance of being selected in the sample.
random selection
selection in such a way as to produce a random sample.
random variable
a group or quantity that takes various values, each with varying probabilities.
References in periodicals archive ?
Fully specifying the data generating process requires the analyst to specify likely ranges for the each of the K stochastic variables for both the subsequent period and the terminal period.
Subjective correlation matrix for stochastic variables.
42) Internal Revenue Code minimum contribution rules are programmed into the model so that underfunding is continually recalculated as a function of the stochastic variables, subject to the minimum contribution rules.
The two key stochastic variables in the model are stock returns and interest rates, the primary determinants of volatility in pension liabilities and assets.
For each economic scenario, the model draws interest rate arid stock return paths for 20 years, with consistent draws for common-year noise terms for the remaining four stochastic variables.
One can imagine the following sequence of events: On December 31 of year one, the model makes random draws of the stochastic variables.
The process of simulating observations on the K stochastic variables and calculating the project's NPV must be repeated a sufficiently large number of times.