Time series from biological systems often display fluctuations in the
measured variables. Much effort has been directed at determining wheth
er this variability reflects deterministic chaos, or whether it is mer
ely ''noise''. Despite this effort, it has been difficult to establish
the presence of chaos in time series from biological systems. The out
put from a biological system is probably the result of both its intern
al dynamics, and the input to the system from the surroundings. This i
mplies that the system should be viewed as a mixed system with both st
ochastic and deterministic components. We present a method that appear
s to be useful in deciding whether determinism is present in a time se
ries, and if this determinism has chaotic attributes, i.e., a positive
characteristic exponent that leads to sensitivity to initial conditio
ns. The method relies on fitting a nonlinear autoregressive model to t
he time series followed by an estimation of the characteristic exponen
ts of the model over the observed probability distribution of states f
or the system. The method is tested by computer simulations, and appli
ed to heart rate variability data.