Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Gordon Scott has been an active investor and ...

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. Getty Images / Monty Rakusen Analysts can assess ...

Uncertainty and risk are issues that virtually every business analyst must deal with, sooner or later. The consequences of not properly estimating and dealing with risk can be devastating. There’s a ...

The Monte Carlo simulation technique, named for the famous Monaco gambling resort, originated during World War II as a way to model potential outcomes from a random chain of events. It is particularly ...

Monte Carlo simulations predict investment risks and rewards using varied scenarios. You can operate Monte Carlo simulations with tools like online calculators and spreadsheets. These simulations aid ...

Both Monte Carlo and decision tree analyses are powerful tools, but each has its particular strengths. Monte Carlo simulations are good for accounting for multiple risks occurring simultaneously.

In 2010 I helped a startup IPO by creating a custom Monte Carlo planning tool in C# that estimated the likelihood that their new small business product would ship on schedule. The output of this tool ...