Tag Archives: Monte Carlo

Monte Carlo Method in R (with worked examples)

Monte Carlo method is a handy tool for transforming problems of probabilistic nature into deterministic computations using the law of large numbers. Imagine that you want to asses the future value of your investments and see what is the worst-case scenario for a given level of probability. Or that you want to plan the production of your factory given past daily performance of individual workers to ensure that you will meet a tough delivery plan with high enough probability. For such and many more real-life tasks you can use the Monte Carlo method.

Monte Carlo approximation of Pi

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