Uncertainty and risk are issues that virtually every business analyst must deal with, sooner or later. The consequences of not properly estimating and dealing with risk can be devastating. There’s a ...

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. Getty Images / Monty Rakusen Analysts can assess ...

Vector computers provide a new tool for management scientists. The application of that tool requires thinking in vector mode. This mode is examined in the context of Monte Carlo experiments with ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Gordon Scott has been an active investor and ...

Numbers are rather useful. This is unfortunate, because they're also rather confusing. Our brains have a hard time making sense of lists of numbers, so we employ an imaginary friend to help us — the ...

Brief review of conditional probability and expectation followed by a study of Markov chains, both discrete and continuous time. Queuing theory, terminology, and single queue systems are studied with ...

How might you go about using Monte Carlo simulations for your retirement plan? Well, first you need to understand what Monte Carlo is and what it isn’t. According to Dana Anspach, CFP, RMA, the ...

Monte Carlo Simulations are a modeling tool used to simulate reality and calculate probabilities of a portfolio supporting a certain withdrawal rate. With the market collapse of 2008, however, many ...

Monte Carlo simulations predict investment risks and rewards using varied scenarios. You can operate Monte Carlo simulations with tools like online calculators and spreadsheets. These simulations aid ...