A Quick Coin Toss
Before You Place The Big Bet
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Key Facts In This Video
Stochasticity means randomness, which can be thought of as unpredictability happening within a set of predictable rules. 00:08
An experiment at UC Berkeley had one group of students flip a coin 100 times and write down the results, and another group simply write down what they think the results of 100 coin tosses would be. A statistician looks at both results and knows which team actually flipped the coin, because the real results show patterns that don't show up in the fake results -- long stretches of only tails, for instance. 00:35
In a stochastic system, you can never predict the exact results, but you can forecast the probability that certain sequences will show up. 01:20