What does Monte Carlo Simulation mean? Read on to discover the definition & meaning of the term Monte Carlo Simulation - to help you better understand the language used in insurance policies.
Monte Carlo Simulation
One important technique that has emerged as crucial to effective risk modeling. MCS is a quantitative technique that examines a wide range of possible outcomes by calculating many different scenarios automatically. It was first developed in World War II by scientists developing the atomic bomb. Since its inception, MCS has been utilized across a variety of industries, such as finance, insurance, health care, oil and gas, renewable energy, pharmaceuticals, and manufacturing.
We hope the you have a better understanding of the meaning of Monte Carlo Simulation.