A stochastic process refers to a:
A)sequence of random variables indexed by time.
B)sequence of variables that can take fixed qualitative values.
C)sequence of random variables that can take binary values only.
D)sequence of random variables estimated at the same point of time.

Question

Quizplus · Accepted Answer

A stochastic process is a mathematical model for a sequence of random variables indexed by time. It is used to describe the evolution of a system or phenomenon over time in a probabilistic manner. Each random variable in the sequence represents the state of the system at a specific point in time. Examples of stochastic processes include stock prices, weather patterns, and traffic flow.

A Stochastic Process Refers to A