Numerical Evaluations of Quantities
Stochastic models help to assess the interactions between variables, and are useful tools to numerically evaluate quantities, as they are usually implemented using Monte Carlo simulation techniques (see Monte Carlo method). While there is an advantage here, in estimating quantities that would otherwise be difficult to obtain using analytical methods, a disadvantage is that such methods are limited by computing resources as well as simulation error. Below are some examples:
Read more about this topic: Stochastic Modelling (insurance)
Famous quotes containing the words numerical and/or quantities:
“The terrible tabulation of the French statists brings every piece of whim and humor to be reducible also to exact numerical ratios. If one man in twenty thousand, or in thirty thousand, eats shoes, or marries his grandmother, then, in every twenty thousand, or thirty thousand, is found one man who eats shoes, or marries his grandmother.”
—Ralph Waldo Emerson (1803–1882)
“The Walrus and the Carpenter
Were walking close at hand:
They wept like anything to see
Such quantities of sand:
“If this were only cleared away,”
They said, “it would be grand!”
“If seven maids with seven mops
Swept it for half a year,
Do you suppose,” the Walrus said,
“That they could get it clear?”
“I doubt it,” said the Carpenter,
And shed a bitter tear.”
—Lewis Carroll [Charles Lutwidge Dodgson] (1832–1898)