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Monte Carlo simulation

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ASP__DEVELOPER Monte Carlo simulation 10-15-2012, 12:14 PM
Jakobshavn Re: Monte Carlo simulation 10-15-2012, 01:14 PM
ASP__DEVELOPER Re: Monte Carlo simulation 10-15-2012, 01:34 PM
Jakobshavn Re: Monte Carlo simulation 10-15-2012, 02:12 PM
ASP__DEVELOPER Re: Monte Carlo simulation 10-15-2012, 03:35 PM
Jakobshavn Re: Monte Carlo simulation 10-15-2012, 03:43 PM
joseph anand Re: Monte Carlo simulation 10-31-2012, 07:17 AM
  1. #1
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    Monte Carlo simulation

    Is it mandatory that each simulation trial depends on previous trial in Monte Carlo simulation ?

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    Re: Monte Carlo simulation

    Only for Markov chains.
    Gary's Student

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    Re: Monte Carlo simulation

    So does that makes the following statement incorrect or correct ?

    "In Monte Carlo simulation, each simulation trial is dependent upon the result of the previous trial."

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    Re: Monte Carlo simulation

    The following is incorrect:
    "In all Monte Carlo simulations, each simulation trial is dependent upon the result of the previous trial."

    The following is correct:
    "It is possible to create a Monte Carlo simulation in which each simulation trial is dependent on the result of the previous trial"

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    Re: Monte Carlo simulation

    I am learning about Monte Calro simulations and trying to answer this question in which I only have this statement:

    "In Monte Carlo simulation, each simulation trial is dependent upon the result of the previous trial."

    so this is true or false ?

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    Re: Monte Carlo simulation

    ....................False

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    Re: Monte Carlo simulation

    Can someone help me to solve this problem

    A market survey company wants to study the investment in a detergent factory based
    on three factors. These factors are
    Independent of each other. The probability distribution of each are

    Annual Demand Profit/Unit Required Investment
    Units Probability Rs. Probability Rs. Probability
    20 0.05 3.00 0.10 1,750.00 0.25
    25 0.10 5.00 0.20 2,000.00 0.50
    30 0.20 7.00 0.40 2,500.00 0.25
    35 0.30 9.00 0.20
    40 0.15 10.00 0.10
    45 0.15
    50 0.05

    Use Monte-Carlo simulation for 1000 iterations and estimate the ROI percentage based on profit
    {(Profit*Demand)/Investment}

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