Monte Carlo Method

The Monte Carlo Method is a statistical technique used to estimate complex outcomes by simulating random samples. Imagine tossing a coin multiple times to find out the probability of it landing on heads. Similarly, Monte Carlo uses random inputs to run simulations for uncertain systems, such as predicting weather or financial markets. By analyzing the results from these simulations, we can gain insights and make informed decisions. It’s like taking many small random samples to get a clearer picture of a larger, uncertain scenario.