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Monte Carlo Simulation

  1. #1
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    Monte Carlo Simulation

    Hi,

    I'm trying to create a monte carlo simulation on sales projections...

    Basically I would like to generate what the profit would be given different sales projections.

    Could someone provide me with some samples, or an idea how I can get this started? Thanks!

  2. #2
    Forum Expert shg's Avatar
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    Re: Monte Carlo Simulation

    Welocme to the forum.

    You haven't provided enough information to make a suggestion.
    Entia non sunt multiplicanda sine necessitate

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    Re: Monte Carlo Simulation

    Crystal Ball is a third party Excel add-on that performs Monte Carlo simulations. If your simulation is fairly straight forward, then using the appropriate random number generator across multiple cells (for your results analysis) should be feasible.

    Pauley

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    Re: Monte Carlo Simulation

    Unfortunately, I am bound from downloading any third party addons... Our company's pretty strict on this so that doesn't seem to be a viable option.

    Sorry about not providing much information to begin with... I'm just starting to build on an idea and was hoping that I could get some examples if anything.

    But basically I would like to put in multiple variables into the simulation such as price of each unit, number of sales, selling price.. To determine the upper/lower/mid profit/loss based on multiple simulations.

    I understand that this is still vague... but I'm mostly looking to build upon some examples.. .if that's possible. Thanks!

  5. #5
    Forum Expert shg's Avatar
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    Re: Monte Carlo Simulation

    As Pauley suggested, you can use random numbers (either uniform across some interval, or normal with some mean and deviation, or any other distribution you like) and tote the results.

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