the stochastic model is used in regression analysis in place of the deterministic model due to The relationship between the response and the explanatory variables is inexact.
A stochastic model is a tool for estimating the probability distribution of potential outcomes given the random variation of one or more inputs over time. Random fluctuations are typically based on observed fluctuations in historical data over a selected time period using standard time series techniques.
Random processes can be classified into different categories based on their mathematical properties, such as random walks, martingale, Markov processes, Levy processes, Gaussian processes, random fields, update processes, and bifurcation processes.
Learn more about the stochastic model here: https://brainly.com/question/14864405
#SPJ4
