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CHAPTER 7 MONTE CARLO METHODS FOR SOLVING THEMonte Carlo methods are stochastic techniques--meaning they are based on the use of random numbers and probability statistics to investigate problems. Monte Carlo simulation furnishes the decision-maker with a range of possible outcomes and the probabilities they will occur for any choice of action. Our example of Monte Carlo simulation in Excel will be a simpliﬁ ed proﬁ t forecast model
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