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 moment a mere numerical superiority by either states or voters in this country proceeds to ignore the needs and desires of the minority, and for their own selfish purpose or advancement, hamper or oppress that minority, or debar them in any way from equal privileges and equal rights—that moment will mark the failure of our constitutional system.”
—Franklin D. Roosevelt (1882–1945)
“James Brown and Frank Sinatra are two different quantities in the universe. They represent two different experiences of the world.”
—Imamu Amiri Baraka [Everett Leroi Jones] (b. 1934)