Time series from biological system often displays 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''. The output from most biological systems is probably the
result of both the internal dynamics of the systems, and the input to
the system from the surroundings. This implies that the system should
be viewed as a mixed system with both stochastic and deterministic co
mponents. We present a method that appears to be useful in deciding wh
ether determinism is present in a time series, and if this determinism
has chaotic attributes. The method relies on fitting a nonlinear auto
regressive model to the time series followed by an estimation of the c
haracteristic exponents of the model over the observed probability dis
tribution of states for the system. The method is tested by computer s
imulations, and applied to heart rate variability data.