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Glossary
Monte Carlo
The mathematical method used on risk analysis. Monte Carlo
simulations are used to approximate the distribution of potential
results based on probabilistic inputs. Each simulation is generated
by randomly pulling a sample value for each input variable from its
defined probability distribution. These input sample values are then
used to calculate the results (in RiskyProject, it is project
schedule parameters: project duration, start and finish times,
success date, and cost). This procedure is then repeated until the
probability distributions are sufficiently well represented to
achieve the desired level of accuracy. The probability distribution
to be used for these inputs is dependent on the types of numbers you
want to generate.
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solutions
