Monte Carlo analysis, or Monte Carlo simulation, is a technique for forecasting that accounts for uncertainty and variability. As an analytical tool, Monte Carlo analysis forces the project development process to incorporate wider thinking and minimize biases. As a communication tool, Monte Carlo analysis is powerful in showing the probabilities and possibilities and identifying the input parameters that impact a specific project context.

Monte Carlo analysis is now more convenient and affordable than at any point in its 70-year history. The technique provides huge additive value for large and complex projects and capital-intensive programs.

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