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stochastic variable

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.
stochastic variable [stō′kas·tik ′ver·ē·ə·bəl]
(mathematics)


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We assume in each case that firms are able to observe the realizations of the stochastic variables before making their production decisions.
The stochastic variables specified by the user include initial investment costs, annual revenues, annual expenses and salvage value.
 
 
 
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