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Risk and Monte Carlo simulation

Risk and Monte Carlo simulation

This entry is part 1 of 6 in the series Monte Carlo Simulation

Whenever the outcome of a situation is not perfectly certain you have uncertainty or risk.

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The Challenge

The Challenge

This entry is part 2 of 6 in the series Monte Carlo Simulation

Intuition based decisions are the most common type of decisions we make in our daily life …

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Uncertainty – lack of information

Uncertainty – lack of information

This entry is part 3 of 6 in the series Monte Carlo Simulation

Every item in a budget or a profit and loss account represents in reality a probability distribution.

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Risk – Exposure to Gain and Loss

Risk – Exposure to Gain and Loss

This entry is part 4 of 6 in the series Monte Carlo Simulation

It is first when the decision involves consequences for the decision maker he faces a situation of risk ..

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Decisions – Criteria for selection

Decisions – Criteria for selection

This entry is part 5 of 6 in the series Monte Carlo Simulation

The risk is best expressed by using a graph illustrating the probability curve. The slope tells us about the uncertainty involved, the steeper the curve the less uncertainty involved.

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The advantages of simulation modelling

The advantages of simulation modelling

This entry is part 6 of 6 in the series Monte Carlo Simulation

All businesses need the ability to, if not predict the future; assess what its future economic performance can be …

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