Monte Carlo simulation is a method for exploring the sensitivity of a complex system by varying parameters within statistical constraints. These systems can include financial, physical, and mathematical models that are simulated in a loop, with statistical uncertainty between simulations. The results from the simulation are analyzed to determine the characteristics of the system.
Common tasks for performing Monte Carlo analysis include:
See also: formal verification, financial engineering, random number, system verification and validation, Monte Carlo simulation in computational finance, parameter estimation, load forecasting, modeling and simulation, simulation software, Monte Carlo simulation videos, Predictive Modeling