What Is a Monte Carlo Simulation?

Monte Carlo Simulation

A Monte Carlo Simulation provides multiple possible outcomes and the probability of each from a large pool of random data samples.

This simulation offers a clearer picture than a deterministic forecast.

For instance, forecasting financial risks requires analyzing dozens or hundreds of risk factors.

Related terms

ACV (All Commodity Volume)

% ACV Distribution

IRC (Instantly Redeemable Coupon)

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