A Monte Carlo simulation is a methodological technique used to evaluate the empirical properties of some quantitative method by generating random data from a population with known properties, fitting a particular model to the generated data, collecting relevant information of interest, and replicating the entire procedure a large number of times (e.g., 10,000) in order to obtain properties of the fitted model under the specified condition(s). Monte Carlo simulations are generally used when analytic properties of the model under the specified conditions are not known or are unattainable. Such is often the case when no closed-form solutions exist, either theoretically or given the current state of knowledge, for the particular method under the set of conditions of interest. When analytic properties are known for ...

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