We are all concerned about the future, who doesn’t? No one knows what will happen in the future. It is a challenge to deal with uncertainty. Monte Carlo simulation puts the future within the right context, which is probabilistic.
Successful companies of various sizes and governments in developed countries are quickly moving far from the naïve conventional way of setting the future possible outcomes as Best Case, Normal Case and Worst Case Scenarios. Whether you are a finance manager, government employee, project manager, or an investment professional, the common element is the concern of what the future entails.
If you are not using Monte Carlo Simulation in making decisions related to the future, so you have deterministic models which are most definitely not the best practice. Here are some examples of companies applying Monte Carl simulation:
- General Motors, Procter and Gamble, and Eli Lilly use simulation to estimate both the average return and the riskiness of new products. At GM, this information is used by the CEO to determine the products that come to market.
- Lilly uses simulation to determine the optimal plant capacity that should be built for each drug.
- The trainer of this course helped a utility company in the region to establish the foundation of implementing Monte Carlo Simulation in planning water demand and the required infrastructure accordingly.
- The trainer of this course helped two big financial institutions in setting the asset allocation decisions using Monte Carlo Simulation to maximize future expected return at the acceptable level of risk.
- Wall Street firms use simulation to price complex financial derivatives and determine the Value at RISK (VAR) of their investment portfolios.
- Shell uses Monte Carlo Simulation in their project evaluation to determine whether to invest billions of dollars in a certain project or not.
- Financial planners use Monte Carlo simulation to determine optimal investment strategies for their clients’ retirement. In this very intensive course, we will look at how we can use Monte Carlo simulation through Crystal Ball which is a product of Oracle and it is 100% utilized in Excel.
The training course is very practical and will uncover the extensive range of the various business applications in which Monte Carlo Simulation can be utilized. You don’t need to have masters in Statistics to start utilizing this advanced tool. The course will equip you with the necessary statistical background. You will return to your companies with a value-adding tool.