WHAT IS MONTE CARLO SIMULATION?
Monte Carlo simulation is used where there are no or insufficient actual data or where further data are required. It is a method of creating artificial data based around clear and commonly accepted guidelines. The artificial data are created through randomly making new data many thousands or even millions of times using a random number generator. This is a mathematical formula for producing seemingly random numbers. There are many such formulae available in modelling although most modellers use just a few of the better known and well tried and tested formulae, such as the Mersenne Twister. This is because all random number generators are not completely random but some of the better known ones have managed to pass ...
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