  This paper presents an algorithm for constructing matched-filter template
banks in an arbitrary parameter space. The method places templates at random,
then removes those which are "too close" together. The properties and
optimality of stochastic template banks generated in this manner are
investigated for some simple models. The effectiveness of these template banks
for gravitational wave searches for binary inspiral waveforms is also examined.
The properties of a stochastic template bank are then compared to the
deterministically placed template banks that are currently used in
gravitational wave data analysis.
