Monte Carlo Simulation Basics

Modelling

Simulation

Published

November 12, 2025

Key Idea:
Use repeated random sampling to approximate distributions, uncertainty, or expected value where analytic solutions are hard or impossible.

Key Concepts

Random draws
Probability distributions
Law of large numbers
Convergence behaviour

Example Pseudocode

---
title: Monte Carlo Simulation Basics
date: 2025-11-12
categories: [Modelling, Simulation]
---

**Key Idea:**  
Use repeated random sampling to approximate distributions, uncertainty, or expected value where analytic solutions are hard or impossible.

## Key Concepts
- Random draws
- Probability distributions
- Law of large numbers
- Convergence behaviour

## Example Pseudocode