Your current place of employment has tasked you to investigate how Monte Carlo Simulation could be implemented and to prepare a presentation with examples. (If you would like, you might also consider another company, but preferably you should choose your current company).

Develop a presentation addressing the following:

· Describe the company environment

· Explain how Monte Carlo simulation might be utilized at the organization

· Provide 2 solid examples

· Pick 1 of your examples and go into more detail. Some things to consider might be:

· Explain what would go into the model

· How would you set it up in Excel? What Excel functions might be needed

· What information is needed? For example, what distributional shapes would characterize certain variables?

· Etc.

· Basically, you should try to explain how you do the analysis without actually having to do it.

· Let’s say the analysis was actually performed. How can management use these results? How would it benefit the company?

Guidelines:

Atleast 4 pages and answer all the questions above.

Answer them separately =

1) usefulness of simulation and risk analysis in the organization

2) What do you mean by simulation and risk analysis.