Asked by Tania Zamora on May 05, 2024
Verified
Describe the Monte Carlo simulation.
Monte Carlo Simulation
A mathematical technique that uses statistical sampling to estimate the probability of various outcomes in a process that cannot easily be predicted due to the intervention of random variables.
- Comprehend the principles and utilization of Monte Carlo simulation within the context of managing risks in projects.
Verified Answer
CS
Craig SeckersMay 12, 2024
Final Answer :
The Monte Carlo simulation simulates a possible range of outcomes by trying many different combinations of risks based on their likelihood. The output from a Monte Carlo simulation provides the project team with the probability of an event occurring within a range and for combinations of events.
Learning Objectives
- Comprehend the principles and utilization of Monte Carlo simulation within the context of managing risks in projects.
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