The word simulation refers to any procedure that is meant to imitate a real-life system. Simulations are especially useful in examining situations that are too complex, too difficult, or too costly to explore in the real world. The computer is often used for this purpose because it is able to efficiently model systems and process data. The phrase computer simulation is a broad rubric for a range of different types of methodologies; the following are their general forms.

Monte Carlo Simulation

In a Monte Carlo simulation, values for uncertain variables are generated by the computer to reproduce information found in the real world. Named for the city of Monte Carlo, Monaco (where the primary attractions are games of chance at gambling casinos), a Monte Carlo simulation generates ...

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