What is Monte Carlo Simulation with some examples?

One simple example of a Monte Carlo Simulation is to consider calculating the probability of rolling two standard dice. There are 36 combinations of dice rolls. Based on this, you can manually compute the probability of a particular outcome.

What is Monte Carlo Simulation and how do you apply it in business?

Monte Carlo simulations are a way of obtaining accurate estimates when working with uncertainties. They use randomness to obtain meaningful information and are effective for calculating business risks and predicting failures such as cost or scheduling overruns.