Monte Carlo simulation

(redirected from Monte Carlo analysis)
Also found in: Dictionary, Medical, Acronyms, Encyclopedia.
Related to Monte Carlo analysis: Sensitivity analysis

Monte Carlo simulation

An analytical technique for solving a problem by performing a large number of trail runs, called simulations, and inferring a solution from the collective results of the trial runs. Method for calculating the probability distribution of possible outcomes.

Monte Carlo Simulation

A computer simulation that seeks to determine the likelihood of various scenarios by running multiple simulations using random variables. The results of the Monte Carlo simulation show the most likely outcomes.

Monte Carlo simulation.

A Monte Carlo simulation can be used to analyze the return that an investment portfolio is capable of producing. It generates thousands of probable investment performance outcomes, called scenarios, that might occur in the future.

The simulation incorporates economic data such as a range of potential interest rates, inflation rates, tax rates, and so on. The data is combined in random order to account for the uncertainty and performance variation that's always present in financial markets.

Financial analysts may employ Monte Carlo simulations to project the probability of your retirement account investments producing the return you need to meet your long-term goals.

Mentioned in ?
References in periodicals archive ?
The result of the Monte Carlo analysis is summarized by the statistics for the time to development given in Table 2.
For environmental managers, Monte Carlo analysis provides a platform to assess both individual sites during transactions and those undergoing brownfields redevelopment.
Among specific topics are soldering technology for opto-electronic packaging, a low-cost plastic packaged module, and the Monte Carlo analysis of passive alignment methods.
Enhanced Monte Carlo analysis that supports all commonly used features, including Latin Hypercube Sampling, in the industry's leading netlist styles.
Advisers will now be able to package John Hancock investment solutions and other value-added material, including a sophisticated Monte Carlo analysis, into a customized and comprehensive investment proposal for clients.
Targeted toward standard cell, memory, and mixed-signal designers, ROAD out-performs traditional Monte Carlo analysis by 10X or more, allowing for the first time ever, a practical statistical optimization flow.
NEW YORK, March 1 /PRNewswire/ -- Imagine Software, the leading provider of full-service hosted trading and risk management solutions for the global financial industry, today announced the addition of Historical Monte Carlo analysis to its current risk module.
7 adds Monte Carlo analysis to both circuit and system simulation engines, allowing users to directly view the overall or individual circuit/system response based on user specified component tolerances.