We’re going to see a simulation based on this technique later in the article. Monte Carlo Simulations utilize something called the Monte Carlo Sampling technique, which is randomly sampling a probability distribution. Why should you learn about Monte Carlo Simulation?
It’s a technique you can use to understand the impact of risk and uncertainty in prediction and forecasting models.Īlthough Monte Carlo Methods can be studied and applied in many ways, we’re going to focus on:
Monte Carlo Simulations are a series of experiments that help us understand the probability of different outcomes when the intervention of random variables is present.
