Monte Carlo Simulation Using RiskSim

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RiskSim is a Monte Carlo Simulation add-in for Microsoft Excel 97 (and later versions of Excel) forWindows and Macintosh.RiskSim provides random number generator functions as inputs for your model, automates MonteCarlo simulation, and creates charts. Your spreadsheet model may include various uncontrollableuncertainties as input assumptions (e.g., demand for a new product, uncertain variable cost ofproduction, competitor reaction), and you can use simulation to determine the uncertainty associatedwith the model's output (e.g., annual profit). RiskSim automates the simulation by trying hundreds ofwhat-ifs consistent with your assessment of the uncertainties.To use RiskSim, you(1) create a spreadsheet model(2) optionally use SensIt to identify critical inputs(3) enter one of RiskSim's random number generator functions in each input cell of your model(4) choose Tools Risk Simulation from Excel's menu3(5) specify the model output cell and the number of what-if trials(6) interpret RiskSim's histogram and cumulative distribution charts.RiskSim facilitates Monte Carlo simulation by providing:Nine random number generator functionsAbility to set the seed for random number generationAutomatic repeated sampling for simulationFrequency distribution of simulation resultsHistogram and cumulative distribution charts