Monte Carlo simulation is:

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Monte Carlo simulation is more complex than sensitivity or scenario analysis. It is a computer-based technique that uses random sampling and statistical analysis to simulate real-world scenarios and their possible outcomes. It is commonly used in finance, engineering, and other fields for risk analysis, forecasting, and planning. Unlike sensitivity or scenario analysis, which use deterministic models to analyze the impact of changes in input variables, Monte Carlo simulation uses probabilistic models to generate a range of possible outcomes and their associated probability distributions.

Monte Carlo Simulation Is