Monte Carlo simulation

Running a party's financial life a thousand times, each time with a different plausible sequence of returns, inflation and events, then reading the chances off the results instead of trusting one guessed future.

L2Level 2 of 3 · no narrower concepts

What it rests on, and what rests on it

It rests on

Rests on it

Related

Beside it, inside Probability

Where it is used

No article names it yet.

In the model

  • The glossary's “Monte Carlo simulation”
  • The glossary's “Monte Carlo standard error”

Sources

  1. Nicholas Metropolis and S. Ulam, Journal of the American Statistical Association 44(247), The Monte Carlo Method, 1949.