Stochastic Variable

A stochastic variable, also known as a random variable, is a quantity whose value is not fixed but rather can vary depending on chance or randomness. It is used in statistics and probability to represent outcomes of uncertain events, such as the result of a die roll or stock market fluctuations. Essentially, it assigns a numerical value to each possible outcome of a random process. This concept helps us quantify and analyze uncertainty, making it easier to model and predict phenomena that are inherently unpredictable.