Monte Carlo Simulation
Learning Outcomes
Get More Info
data, Tech & ai skills in
What’s Included
Principles of Monte Carlo Simulation
Principles of Monte Carlo Simulation
Monte Carlo simulation can be useful in many situations and industries. Learn what it is and how it works in this lesson.
Creating a Single Simulation
Creating a Single Simulation
Monte Carlo simulation is named after a casino, so we'll use it to analyze a roulette game. In this lesson, we'll learn how to simulate the winnings from 1,000 roulette wheel spins in Excel.
Creating a Repeated Simulation
Creating a Repeated Simulation
A Monte Carlo simulation consists of an individual simulation repeated many times. Learn how to use a data table to create a repeated simulation in this lesson.
Analyzing Simulation Results
Analyzing Simulation Results
The results of a Monte Carlo simulation tell us what outcomes are more or less likely. Learn how to compute simple summary statistics from a Monte Carlo simulation in this lesson.
Simulating Activity Times
Simulating Activity Times
When simulating a variable, we need to know the probabilities of each possible outcome. In this lesson, learn how to simulate the length of various business activities when we know the probability of each possible value.
Simulating Project Length
Simulating Project Length
Combining the simulated length of individual project activities lets us simulate the length of the whole project. Learn how to do this in this lesson.
Analyzing the Project Simulation
Analyzing the Project Simulation
The results of a Monte Carlo simulation can be used to obtain insights about the simulated process. Learn how to use summary statistics, a frequency distribution table, and a histogram to understand the results of a project length simulation.
Simulating Demand for a Product
Simulating Demand for a Product
Simulation can often accompany an analysis of different possible cases. Learn how to calculate the profit for different possible cases, and simulate the profit values from a probability distribution table in this lesson.
Simulating Costs for a Product
Simulating Costs for a Product
The method for simulating values varies based on the probability distribution they follow. In this lesson, we learn how to simulate two cost variables based on a uniform distribution and a normal distribution.
Simulating Profits for a Product
Simulating Profits for a Product
Often a Monte Carlo simulation includes multiple variables. In this lesson, learn how to create a Monte Carlo simulation of profit based on several revenue and cost variables.
Analyzing our Profit Model
Analyzing our Profit Model
Analyzing the results of a Monte Carlo simulation allows us to uncover important insights. In this lesson, learn how to analyze the results of a profit-based simulation and understand how it affects the viability of the project.
Determining the Appropriate Distribution
Determining the Appropriate Distribution
One of the key considerations when simulating a variable is understanding what probability distribution it follows. In this lesson, learn about the most common distributions used in Monte Carlo simulation and simulate from them in Excel.
Certifications
A Learner Experience Designed to Deliver Transformation
How Leading Teams Use Kubicle to Upskill & Excel
