Based upon the Madelung version of the Schrodinger equation, quantum evolution in real space is interpreted as a nonlinear Markov process in which the future state depends upon the present state and the present probability distribution. From this viewpoint, the concepts of nonlocality and entanglement are discussed. The concept of hidden statistics is introduced as an alternative way to formulate and interpret quantum formalism as well as to solve the Schrodinger equation. The problem of incompleteness of the Schrodinger description as well as physical meaning of the quantum potential is discussed.