The problem a Monte Carlo Simulation can address Managing a workforce efficiently is a crucial aspect of an HR department, and using a Monte Carlo simulation can greatly aid in this endeavor. By employing forecasting models, this simulation enables risk analysis and prediction, making it an essential tool for HR departments. For instance, consider a company with 250 employees and a 10% turnover rate. In this case, utilizing a Monte Carlo simulation would help determine the monthly average of hires needed to maintain appropriate staffing levels. With an accurate attrition model, the company can forecast the number of positions that will become available each year due to employee turnover, thereby allowing the HR department to fill the positions before they become vacant. This ensures the smooth and efficient running of the company (Milbank, 2020)