Monte Carlo Simulations

Monte Carlo simulations are a statistical technique used to model and analyze complex systems or processes by generating random samples. Imagine you want to estimate the probability of it raining on a given day. Instead of just checking the weather forecast, you simulate many possible weather scenarios based on historical data and probability distributions. By observing the outcomes of these simulations, you can better understand the likelihood of different events occurring. This method is widely used in fields like finance, engineering, and science to make informed decisions under uncertainty.