Monte Carlo simulation

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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.

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Monte Carlo simulation (MCS) is a widely used technique in the risk analysis of the energy projects.
It's time to roll the dice using a Monte Carlo simulation.
To test the usefulness of interval analysis as a method for error analysis, an error analysis was conducted with both interval analysis and Monte Carlo simulations on the layer-shift method used to characterize a commercial MagRAM (magnetic radar absorbing material) at 10 GHz with nominal [[epsilon].
The Monte Carlo simulation has been developed as an improved scenario analysis.
Monte Carlo simulation works by selecting values at random within a specified range and creating a probability distribution.
99th percentile) that can be generated by a Monte Carlo simulation, for example, can shed light on the critical risks a company is exposed to, highlighting that firm's likeliest worst-case scenarios.
Parallel processing of radiotherapy Monte Carlo simulations on a remote Beowulf cluster.
By her working the additional 4 years, according to the Monte Carlo simulation, the chance of there being enough money in retirement increased to 87% from 83%, providing more clarity for that couple, he says.
A Monte Carlo simulation can help because, rather than rendering advice using a flawed assumed average return for each and every year of an analysis, an advisor can simulate the plan using randomly ordered returns based on a set of reasonable parameters.
These were then used as an input for Monte Carlo simulations.
Just as the 5 percent of electric shocks occurred 100 percent of the time when the electrician was standing in water, so too could the 5 percent investor shock occur with a much higher probability than Monte Carlo simulations suggest.
The end result of Monte Carlo simulations is a range of possible outcomes including the one that is most likely.

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