Dictionary
search :       browse : 
A B C D E F G H I J K L M
  N O P Q R S T U V W X Y Z
         
Description
Related Terms
Everyday Examples
Interactive Checkpoint
More Information
Challenge
How to use this dictionary
Contact
 Description  
 Monte Carlo Method:  A process used to approximate probabilities by simulating an event.

The following three ways can be used to determine the probability of an event.

  • calculate the probability mathematically
  • experiment by checking several random groups
  • simulate or act out the events with a model

In many instances, calculating the probability may be too difficult. And actually experimenting with the actual event may be too time-consuming. So, we can use simulation (or modeling) to approximate probabilities that otherwise might be difficult or impossible to determine.

The process of simulating an event to approximate probabilities is called the Monte Carlo method. The method was developed by the mathematician Stan Ulam during World War II; however, the method gets its name from the procedures used by casinos to determine probabilities of winning casino games.