Econometrics involves using computer analysis and statistical modeling techniques to mathematically describe numerical relationships between key economic forces such as labor, capital, interest rates, and government policies, and test the effects of changes in economic scenarios.
Monte Carlo Simulation is a computational algorithm that relies on repeated random sampling to obtain numerical results. It's particularly useful for assessing the probability distributions of complex systems.
Statistical modeling refers to the process of applying statistical analysis to a set of data in order to identify patterns, understand relationships, and make predictions.
A stochastic process or variable relies on probabilistic behavior and chance, commonly used in fields like statistics, finance, and engineering to model systems that are inherently random.
