http://theadvantageofleadershipnow.com/
Episode link
http://www.thepmpodcast.com/index.php?option=com_content&task=view&id=219&Itemid=9
Computer simulation has to do with using computer models to imitate real life or make predictions. When you create a model with a spreadsheet like Excel, you have a certain number of input parameters and a few equations that use those inputs to give you a set of outputs (or response variables). This type of model is usually deterministic, meaning that you get the same results no matter how many times you re-calculate. [ Example 1: A Deterministic Model for Compound Interest ]
Monte Carlo simulation is a method for iteratively evaluating a deterministic model using sets of random numbers as inputs. This method is often used when the model is complex, nonlinear, or involves more than just a couple uncertain parameters. A simulation can typically involve over 10,000 evaluations of the model, a task which in the past was only practical using super computers.
Read more
http://www.vertex42.com/ExcelArticles/mc/MonteCarloSimulation.html
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