Simulation Master

The Risks Hidden in Single Point Estimates

Building a spreadsheet model for a business case, product profitability projection, etc. often entails estimating some input factors.  The estimates are often a most likely value, an estimated average, or median.  These are single-point estimates since you’re only using one number (a single data point) for each input.  Finally, you get an output number from …

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Optimizing a Design with Monte Carlo Simulation

Performance and cost trade-offs are a constant in engineering design.  Optimizing a design to balance these competing forces can be challenging to quantify and we often have to resort to experience or intuition.  One of the traditional cost drivers is specifying tolerances.  Part dimensions are naturally random variables since each part manufactured will not be …

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Input Correlation Methods in Simulation Master

In this article, we will discuss input correlation methods that can be used with Simulation Master.  In a previous article, we discussed why it is important to account for correlation among input random variables when performing Monte Carlo simulation. There are two input correlation methods available in Simulation Master: Rank order correlation Bivariate copulas Rank …

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