Stochastic simulation is a method used to model and analyze systems that are influenced by random variables. It helps in understanding the behavior of complex systems by generating a range of possible outcomes based on probabilistic inputs. This technique is widely applied in fields such as finance, engineering, and environmental science to predict future events and assess risks. In a stochastic simulation, multiple scenarios are created by varying the input parameters randomly. Each scenario is run multiple times to build a distribution of possible results. This approach allows researchers and decision-makers to evaluate uncertainties and make informed choices based on the likelihood of different outcomes.