Glossary of economics research
Results of search for random follow:
random:
Not completely predetermined by the other variables available.
Examples: Consider the function plus(x,y) which we define to have the value
x+y. Every time one applies this function to a given x and y, it would give
the same answer. Such a function is deterministic, that is,
nonrandom.
Consider by contrast the function N(0,1) which we define to give back a draw
from a standard normal distribution. This function does not return the
same value every time, even when given the same parameters, 0 and 1. Such a
function is random, or stochastic.
Contexts: statistics; econometrics; time series
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