Alan, I would like to know how to do MonteCarlo simulations.
I decided to ask publicly because maybe other people would like this too.
Can you show me or do I need a special program?
I believe it is " software" that you can purchase and download to your computer and can be used in "Excel" spreadsheet. My understanding is that it is quite expensive!! I believe it may cost several thousand dollars(US) to purchase.....You may google "Monte Carlo Simulation Software" and you will have some idea of what is involved.
You don’t necessarily need expensive software to do Monte Carlo simulations (though it depends what you classify as “expensive”!).
You can do MC simulations using Excel (though I’m not a fan of Excel!).
I use an old version of Mathcad (unfortunately, PTC, who own Mathcad, now insist on an annual subscription for newer versions – and you can’t buy the older versions alone!).
I also use a home version of MATLAB - price ~ £100 (100 UK pounds) – made by the Mathworks.
There are lots of You Tube examples of MC simulation. A simple example is shown at https://www.youtube.com/watch?v=VJTFfIqO4TU for example.
Thanks very much Alan :)
I looked at Matlab by Mathworks. It is $219 in Australia.
But then they say that to buy Simulink and add ons they are $65 each.
So this means I do not really know how much it will cost as I don't know if I need these extras.
The videos you sent have been written in Python programming language which appears to be a free download. In the very distance past I was relatively proficient at FORTRAN so I have some of the basic concepts and may be able to learn this language. I will admit though that getting my head around the logic could be a major problem for me these days.
I also looked at a Matlab video. It was showing many fabulous practical applications but I know I will never master any of those. At this instant in time I am only interested in running MonteCarlo simulations so that i can check my own probability answers.
I do not think I am interested in learning to do this in EXCEL. I think it would be super clumsy.
So this has led me to 3 options:
1) Get Matlab and learn to use it.
2) Download Python and learn to use it.
3) Keep asking you to check my answer :))
Do you have any input for me?
(1) You don’t need any of the MATLAB add-ons to run Monte Carlo simulations.
(2) Python is an increasingly popular programming language these days. I haven’t used it myself, so can’t say much about it, but I suspect it’s fairly easy to use (and can certainly be used for MC simulations), especially if you have previous programming experience in Fortran.
(3) MC in Excel is certainly clumsy!
(4) I’m also happy to continue running MC checks!
Thank you Alan that is ever so kind of you.
I will continue asking you to check my answers for now but hopefully at some point I will learn Python and be able to use it to do my own checks. I really like the idea of programming again and I'd like to be able to check my own probablility solutions too.
Since you have said it is alright, I will keep asking you to check my answers. At least I will for the moment.
Thank you, I really appreciate your input and help :)