The assignment this week introduces Monte Carlo simulations. These are structured as a way to incorporate randomness into business plans. For instance, some in finance could use Monte Carlo Simulation to predict the probability of a global recession. With this information, the company could rationalize the global recession probability into its business planning.

Monte Carlo Simulations can improve business planning in many different areas. Within the framework of your major (i.e., management, human resource management, marketing), what is a good application for a Monte Carlo Simulation? Topics that could be discussed include:

• The problem a Monte Carlo Simulation can address
• What could happen if this problem is not addressed?
• Other analytic approaches to address the problem
• A defense of the Monte Carlo Simulation as the right analytic approach to address the problem

Answer rating: 100% (QA)

In the context of marketing a Monte Carlo Simulation can be effectively applied to forecast the potential outcomes of various marketing campaigns or s... View the full answer