Business Operations Consulting, Risk Management and Loss Control

 

Monte Carlo Analysis (also known as Monte Carlo Simulation, MCS) is one of the better known methods for analyzing situations that contain a significant component of uncertainty.  The information presented here is to help explain it in simple terms, how it fits in to our risk consulting work, and hopefully interest you to explore this very interesting tool further on your own.


Monte Carlo Simulation was developed in the 1940's to help answers problems in nuclear physics. Typical mathemetical calculations answer questions such as: to make 100 cars, how