By Kardi Teknomo, PhD .
Advantages to Use Monte Carlo Simulation
- To use Monte Carlo Simulationis quite simple and straightforward as long as the convergence can be guaranteed by the theory.
- Monte Carlo Simulation may provide statistical sampling for numerical experiment using computer
- For optimization problems, Monte Carlo Simulation often can reach global optimum and overcome local extreme
- Monte Carlo Simulation provides approximate solution to many mathematical problems
- The method can be used for both stochastic (involve probability) and deterministic (without probability).
Preferable reference for this tutorial is
Teknomo, Kardi. Monte Carlo Simulation Tutorial. http:\\people.revoledu.com\kardi\ tutorial\Simulation