Monte Carlo Simulation Studies

Monte Carlo simulation refers to a broad range of methods of evaluating statistical estimators through the use of computer algorithms. Monte Carlo methodology was developed by American physicist Stanislaw Ulam, who first conceptualized the method while attempting to determine the probability of winning a game of solitaire; he found that playing a number of games and determining the percentage of winning games was much simpler than attempting to calculate all possible card combinations. In the 1940s, Ulam and John von Neumann employed this method of developing the hydrogen bomb. The simulation is named after the famous Monte Carlo Casino in Monaco because the method is based on random chance.

The methodology generates a large number of occurrences based on a set of specified parameters, which can ...