This is the second in a series of postings about correlation modelling. In the first posting we discussed the idea of correlation as representing a proxy model of dependency between random variables. In this posting, we discuss the idea the often overlooked concept...
This article offers a simple and concise explanation of the Monte Carlo simulation: a technique that combines statistical concepts (random sampling) with the ability of computers to generate pseudo-random numbers and automate calculations. The key to Monte Carlo...
Simulación Monte Carlo El análisis de riesgos es parte de cada decisión que tomamos. Recursos Método Monte Carlo Nos enfrentamos constantemente a la incertidumbre, la ambigüedad y la variabilidad. Y aunque tenemos un acceso a la información sin precedentes, no podemos...
Just for fun, here we talk about using Monte Carlo simulation to estimate the value of π (3.14159…). A circle of radius one will have area equal to π, and a square drawn around that circle will have area 4. When centered at the origin the circle has the equation...
