Chapter 20

Simulation and Risk Analysis

Abstract

This chapter introduces what Simulation is, more specifically the Monte Carlo method, which has been used in several fields of knowledge involving decision-making problems that present risks and uncertainties. The Monte Carlo method uses the generation of random numbers to assign values to variables. Through numerical experiments, it is possible to have a better understanding of the behavior of the system under analysis, as well as the forecasting of future scenarios.

Keywords

Simulation of systems; Monte Carlo method; Generation of random numbers; Analysis of risks and uncertainties

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