Why to use a stochastic model?

Stochastic models are used to account for randomness and uncertainty in processes or systems, making them valuable for predicting outcomes in various fields such as finance, Biology, and engineering. They help capture the variability inherent in real-world phenomena, allowing for more accurate simulations and decision-making under uncertainty. By incorporating probabilistic elements, these models enable better risk assessment and management strategies. Overall, they provide a more realistic framework for understanding complex systems where deterministic models fall short.