Monte Carlo simulation

(noun)

a broad class of computational algorithms that rely on repeated random sampling to obtain numerical results--i.e., by running simulations many times over in order to calculate those same probabilities

Related Terms

Examples of Monte Carlo simulation in the following topics:

  • Monte Carlo Simulation

    • Monte Carlo simulation uses statistical data to figure out the average outcome of a scenario based on multiple, complex factors.
    • The Monte Carlo method solves a problem by directly simulating the underlying process and then calculating the average result of the process.
    • In essence, the Monte Carlo method is designed to find out what happens to the outcome on average when there are changes in the inputs.
    • The advantage of the Monte Carlo method is that it is able to handle multiple moving, and possible related, inputs.
    • As the number of factors increases, it becomes harder to figure out the "base case. " Statistical analysis through Monte Carlo simulations is great at handling problems with multiple, inter-related, and uncertain factors.

  • Chance Models

    • Stochastic models help to assess the interactions between variables and are useful tools to numerically evaluate quantities, as they are usually implemented using Monte Carlo simulation techniques .
    • A stochastic model would be able to assess this latter quantity with simulations.
    • Stochastic models can be simulated to assess the percentiles of the aggregated distributions.
    • In a simulated stochastic model, the simulated losses can be made to "pass through" the layer and the resulting losses are assessed appropriately.
    • Monte Carlo simulation (10,000 points) of the distribution of the sample mean of a circular normal distribution for 3 measurements.

  • North Atlantic Treaty Organization (NATO)

    • Other major exercises that followed included Exercise Grand Slam and Exercise Longstep, naval and amphibious exercises in the Mediterranean Sea, Italic Weld, a combined air-naval-ground exercise in northern Italy, Grand Repulse, involving the British Army on the Rhine (BAOR), the Netherlands Corps and Allied Air Forces Central Europe (AAFCE), Monte Carlo, a simulated atomic air-ground exercise involving the Central Army Group, and Weldfast, a combined amphibious landing exercise in the Mediterranean Sea involving American, British, Greek, Italian and Turkish naval forces.

  • Introduction

    • Editors: Salvador Treviño and Carlos Ruy Martinez (ITESM, Monterrey Campus, Mexico)
    • Contributors: Carlos Alberto Alanis, Gaspar Rivera, Jorge Echeagaray, Jose de Jesus Montes, Juana Monica Garcia, Ramiro Robles, and Roberto Sanchez

  • Approximate Integration

    • In higher dimensions, where these methods become prohibitively expensive in terms of computational effort, one may use other methods such as the Monte Carlo method.

  • The Correction Factor

    • This property is often exploited in a wide variety of applications, including general problems of statistical estimation and machine learning, to estimate (probabilistic) quantities of interest via Monte Carlo methods.

  • Expected Value

    • This property is often exploited in a wide variety of applications, including general problems of statistical estimation and machine learning, to estimate (probabilistic) quantities of interest via Monte Carlo methods.

  • The Infamous Decade

    • His administration is best remembered for the outstanding diplomatic work of his Foreign Minister, Carlos Saavedra Lamas.
    • Montes and Urbano de la Vega and included members such as Colonel Juan Domingo Peron and Enrique P.