What is chance variation




















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Therefore, accurately determining the standard error of the mean depends on the presence of chance. A stochastic model is a tool for estimating probability distributions of potential outcomes by allowing for random variation in one or more inputs over time. The random variation is usually based on fluctuations observed in historical data for a selected period using standard time-series techniques.

Distributions of potential outcomes are derived from a large number of simulations stochastic projections which reflect the random variation in the input s. Business Courses. Quizzes test your expertise in business and Skill tests evaluate your management traits.

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