What are the benefits and limitations of using Monte Carlo analysis in the risk management and decision making process Demonstrate how Monte Carlo simulation can be used in the policy setting and explain why might a manager be forced to use simulation instead of an analytical model in dealing with ...

Stimulation is a process for checking the duplication of system features real system and characteris ...

What are the benefits and limitations of using Monte Carlo analysis in the risk management and decision

Question:

What are the benefits and limitations of using Monte Carlo analysis in the risk management and decision making process? Demonstrate how can be used in the policy setting and explain why might a manager be forced to use simulation instead of an analytical model in dealing with a problem of the U.S economy?
Monte Carlo simulation
Monte Carlo simulation is a technique used to understand the impact of risk and uncertainty in financial, project management, cost, and other forecasting models. A Monte Carlo simulator helps one visualize most or all of the potential outcomes to...