IESE Insight
Monte Carlo Simulation
Fecha: 02/10/2019
Autor / es: de Santiago, Rafael
Tipo de documento: Technical Note
Áreas: Service and Operations Management; Decision Analysis; Entrepreneurship
Departamento: Managerial Decision Sciences
Idiomas: English
Referencia: ADN-284-E

This technical note introduces the basic concepts of Monte Carlo simulation, as well as the software to run the models (Crystal Ball). The requirements to follow the note are a working knowledge of probability distributions, decision trees and expected values, as well as being familiar with Microsoft Excel spreadsheets. As Monte Carlo simulation is better understood when applied to practical problems, the concepts and techniques are introduced by analyzing a business decision in the pharmaceutical industry.

 

Objetivo pedagógico

This technical note is meant to be an aid in teaching any case related with Monte Carlo simulation (scenario simulation).

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