Chapter 11, Problem 126UP

To determine

Elucidate the difference between a probabilistic model and a deterministic model.

Explanation of Solution

Difference between a probabilistic model and a deterministic model:

Probabilistic model:

The probabilistic model has two different parts given as follows:

• Deterministic model.
• Random error.

The general form of the probabilistic model is as follows:

$y=\left\{\text{Deterministic component}+\text{Random error}\right\}$

Where, y is the variable of interest.

Deterministic model:

The deterministic model deals with the prediction of y exactly from x.

The general form of the deterministic model is as follows:

$E\left(y\right)=\text{Deterministic component}$

Where, y is the variable of interest.