Figure 1. Screen shot of the hydraulic simulation project

Monte Carlo Simulation (1) Example

The hydraulic engineering simulation project utilized Pearson Type III distribution. Provided the mean, standard deviation, skewness, and other inputs, the discharge-frequency curve with 95% confidence interval uncertainty bans is constructed. The screen shot is shown on Figure 1. below.

Monte Carlo Simulation Programming

Monte Carlo simulation is often used in business for risk and decision analysis, to help make decisions given uncertainties in market trends, fluctuations, and other uncertain factors. This Monte Carlo simulation section illustrates two examples on how Excel VBA can be utilized for building simulation models. Hydraulic engineering and market analysis examples are demonstrated.

Projects Sample Directory Map

Quick Contact

Figure 2. Screen shot of the profit/market simulation program

Monte Carlo Simulation (2) Example

This model is taken from our XL Modeling VBA program. Given the market assumption, profit equation, and input variables distributions (uniform, normal, and truncate normal), we derived the probability distribution of the profit and generate the histogram.

From the probability distribution, we can obtain the probability of the profit that excesses any given number of value. We can also obtain the median and average of the profit from the distribution.

Copyright © Excel Business Solutions. All Rights Reserved.