📚 Project Vocabulary: Monte Carlo Simulation 🎲

📚 Project Vocabulary: Monte Carlo Simulation 🎲

Definition: A risk analysis technique that uses statistical sampling and probability distributions to simulate the outcomes of a project based on different risk scenarios.

Example: In a complex engineering project with many uncertainties, the project manager might use a Monte Carlo simulation to model the potential impact of various risk events on the project’s schedule and budget, helping to develop more realistic plans and contingencies.

A Monte Carlo simulation is like rolling the dice thousands of times to predict the project’s future. 🎲🔮

#MonteCarloSimulation #RiskScenarios #ProbabilisticForecasting #AcutePMC #riskanalysis #vocabulary #budget

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