Difference between revisions of "MonteCarloMethod"

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<ref> Monte Carlo Simulation. History. Palisade.com [online]. Available at: https://sites.google.com/a/vt.edu/monte-carlo-simulation/history</ref>
 
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==References==
 
==References==

Revision as of 09:56, 22 January 2018

  • The Essay topic: Monte Carlo Method in Simulations
  • Author: Bc. Yauheniya Andreyuk

1. Introduction

Monte Carlo method is an algorithm that rely on repeated random sampling to obtain numerical results. Essential idea of Monte Carlo is using randomness to solve problems that might be deterministic in principle. They are often used in physical and mathematical problems and are most useful when it is difficult or impossible to use other approaches. Monte Carlo methods are mainly used in three distinct problem classes: optimization, numerical integration, and generating draws from a probability distribution. [1] Monte Carlo simulation is a technique that allows to see all the possible outcomes of the decisions and assess the impact of risk, allowing better decision making under uncertainty. The technique is used by professionals in such fields as finance, project management, energy, manufacturing, engineering, research and development, insurance, oil & gas, transportation, and the environment. The simulation furnishes the decision-maker with a range of possible outcomes and the probabilities they will occur for any choice of action. It shows the extreme possibilities — the outcomes of going for broke and for the most conservative decision — along with all possible consequences for middle-of-the-road decisions. [2]

2. History

[3]

References

  1. Monte Carlo method. Wikipedia.org [online]. Available at: https://en.wikipedia.org/wiki/Monte_Carlo_method
  2. Monte Carlo Simulation. Palisade.com [online]. Available at: http://www.palisade.com/risk/monte_carlo_simulation.asp
  3. Monte Carlo Simulation. History. Palisade.com [online]. Available at: https://sites.google.com/a/vt.edu/monte-carlo-simulation/history