Explain a stochastic process simply
Company: Morningstar
Role: Data Scientist
Category: Statistics & Math
Difficulty: easy
Interview Round: Technical Screen
## Question
In plain, non-technical language, explain what a **stochastic process** is to a hiring manager.
Include:
- An intuitive definition (what varies, and what it varies over).
- A concrete real-world example.
- How it differs from a single random variable.
- (Optional) One key property you might mention in practice (e.g., independence, stationarity, Markov property) and what it means intuitively.
Quick Answer: This question evaluates understanding of stochastic processes and the ability to translate statistical concepts into plain language, including recognizing how a process differs from a single random variable and how properties like independence or stationarity inform intuition.