Chance-based

Chance-based describes systems, events, or outcomes that are primarily determined by randomness, luck, or probability rather than by skill, planning, or predictable causes. This implies an element of unpredictability and a lack of control over the results. The outcomes are often contingent on unpredictable occurrences and the relative frequencies of certain events. It emphasizes that success or failure is heavily influenced by factors beyond one's immediate control. The term frequently appears in discussions of games, investments, scientific endeavors, and various social contexts where uncertainty is a significant factor. Systems classified as chance-based are not easily forecast or influenced and the outcome, however well prepared one may be, is usually outside the grasp of the user. They involve inherent risk or reward contingent upon the specific event that may or may not occur.

Chance-based meaning with examples

• The lottery is a prime example of a chance-based activity. Participants select numbers, and the winning numbers are drawn randomly, making the outcome entirely dependent on luck. Statistical probability dictates the likelihood of winning, emphasizing the system's reliance on random chance over skill or planning. This contrasts with a contest where skill plays a role.
• Stock market investments, especially short-term trades, can be viewed as chance-based. While investors analyze trends, unpredictable market fluctuations, geopolitical events, and economic shifts significantly influence stock prices, rendering the outcome uncertain. Risk management, while important, doesn’t remove the unpredictable nature of the market.
• Many scientific experiments, particularly those involving complex systems, are chance-based. Repeated trials of a new drug's effects on patients cannot guarantee a similar result due to the nature of biological responses. The outcome is influenced by a complex interplay of chance elements that cannot be predicted.
• Certain role-playing games incorporate chance-based mechanics, like dice rolls, to determine the success or failure of actions. Whether a character overcomes a challenge relies on a random number generator which simulates the uncertainties of real-world scenarios. These rules create unpredictable and exciting outcomes.
• The process of job searching, although highly skill-based, also involves elements of chance. Matching the right person with the right role includes the timing of applying, competition and the preference of recruiters, with factors outside of the applicant’s control affecting the likelihood of being hired.