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Stochastic Scenario Analysis — Probabilistic multi-scenario evaluation under uncertainty

Stochastic Scenario Analysis evaluates a system or decision across multiple explicitly defined scenarios, each assigned a probability of occurrence. Unlike deterministic scenario analysis, it propagates uncertainty through probability distributions and computes expected outcomes, variance, and risk metrics across the scenario space, giving decision-makers a structured view of what could happen and how likely each outcome is.

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Sources

  1. Birge, J. R., Louveaux, F. (2011). Introduction to Stochastic Programming (2nd ed.). Springer. ISBN: 9781461402374
  2. Lempert, R. J., Popper, S. W., Bankes, S. C. (2003). Shaping the Next One Hundred Years: New Methods for Quantitative, Long-Term Policy Analysis. RAND Corporation. link

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Referenced by

ScholarGateStochastic Scenario Analysis (Stochastic Scenario Analysis — Probabilistic multi-scenario evaluation under uncertainty). Retrieved 2026-06-04 from https://scholargate.app/en/simulation/stochastic-scenario-analysis