Monte Carlo is a simulative method at the same calculating time and can distribute important probabilities and number variables for a project. This method allows the decision maker to analyze the correlation between number variables. By using this method, the decision maker can create a domain of value distributing probabilities for the outcomes of the project instead of only value.
By calculating probability distributions correlative to the outcomes of the project, it will help the decision maker to decide whether they should implement the project or not.
People will do the following order to make a simulation abacus:
- Preparation of a project planning
- Identification of sensible and impossible number variables
- Identification and definition of correlative variables consisting of correlation of straight and inverse variables and its intensity.
- Preparation of simulating models
- Analysis of the outcomes such as statistic values, probability distributions.
We can divide into 4 stages for each simulating model such as: Assuming variable declaration, simulative running, running result checks and preparation of report and analysis.
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