Monte Carlo

Monte Carlo is a method used to solve complex problems by simulating many possible scenarios through random sampling. Think of it as running numerous virtual experiments to see different outcomes, helping us understand the range of possibilities and their likelihoods. It’s commonly used in finance, science, and engineering to analyze uncertainty and make informed decisions when exact solutions are difficult or impossible to determine. By repeating random simulations, Monte Carlo provides a probabilistic picture of potential results, aiding better planning and risk assessment.