The Monte Carlo simulation, though, allows you to take that random walk thousands of times, generating different results for random variables that can affect markets.

A Monte Carlo simulation runs thousands of "what-if" scenarios, each with different variables (e.g., stock market performance, inflation rates, etc.). The outcome is shown as a percentage, from 0 ...

This stochastic process , named after the Monte Carlo casino, generates random system states from which the desired properties of the system can be determined.

Bayesian statistics have made great strides in recent years, developing a class of methods for estimation and inference via stochastic simulation known as Markov Chain Monte Carlo (MCMC) methods. MCMC ...