Stochastic methods are a set of mathematical techniques used to analyze and model random phenomena. These methods involve the use of statistical principles, probability theory, and stochastic processes to study uncertainty and variability in systems. Stochastic methods are commonly used in fields such as finance, engineering, and biology to model complex systems that exhibit randomness and uncertainty. The goal of stochastic methods is to quantify and understand the behavior of these systems in order to make predictions and optimal decisions. Some common stochastic methods include Markov chains, Monte Carlo simulation, and stochastic differential equations.