Stochastic models are mathematical models that incorporate random variables or uncertainty into their structure. These models are used to describe and analyze systems where randomness plays a significant role, such as in financial markets, telecommunications networks, and biological systems. Stochastic models are widely used in a variety of fields, including statistics, finance, engineering, and operations research, to make predictions, optimize decision-making, and simulate complex systems. Some common types of stochastic models include Markov chains, queuing models, and simulation models.