Stochastic Control

Stochastic control is a mathematical approach to making optimal decisions in systems that are uncertain or chance-based. It involves planning actions over time while accounting for randomness, like unpredictable weather or market fluctuations. The goal is to develop strategies that maximize desired outcomes or minimize risks, despite the inherent unpredictability. This approach is used in fields such as finance, engineering, and economics to manage complex, dynamic systems where outcomes are influenced by both controlled actions and random factors.