Browse Definitions:
Definition

Monte Carlo method or Monte Carlo analysis

Contributor(s): David Tobiano

The Monte Carlo method, also called Monte Carlo analysis, is a means of statistical evaluation of mathematical function s using random samples. This requires a good source of random numbers . There is always some error involved with this scheme, but the larger the number of random samples taken, the more accurate the result.

In its pure mathematical form, the Monte Carlo method consists of finding the definite integral of a function by choosing a large number of independent-variable samples at random from within an interval or region, averaging the resulting dependent-variable values, and then dividing by the span of the interval or the size of the region over which the random samples were chosen. This differs from the classical method of approximating a definite integral, in which independent-variable samples are selected at equally-spaced points within an interval or region.

The Monte Carlo method is most famous for its use during the Second World War in the design of the atomic bomb. It has also been used in diverse applications, such as the analysis of traffic flow on superhighways, the development of models for the evolution of stars, and attempts to predict fluctuations in the stock market. The scheme also finds applications in integrated circuit ( IC ) design, quantum mechanics , and communications engineering.

This was last updated in March 2011

Continue Reading About Monte Carlo method or Monte Carlo analysis

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • PCAOB (Public Company Accounting Oversight Board)

    The Public Company Accounting Oversight Board (PCAOB) is a Congressionally-established nonprofit that assesses audits of public ...

  • cyborg anthropologist

    A cyborg anthropologist is an individual who studies the interaction between humans and technology, observing how technology can ...

  • RegTech

    RegTech, or regulatory technology, is a term used to describe technology that is used to help streamline the process of ...

SearchSecurity

  • Advanced Encryption Standard (AES)

    The Advanced Encryption Standard, or AES, is a symmetric block cipher used by the U.S. government to protect classified ...

  • identity theft

    Identity theft, also known as identity fraud, is a crime in which an imposter obtains key pieces of personally identifiable ...

  • spear phishing

    Spear phishing is an email-spoofing attack that targets a specific organization or individual, seeking unauthorized access to ...

SearchHealthIT

SearchDisasterRecovery

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

  • disaster recovery as a service (DRaaS)

    One approach to a strong disaster recovery plan is DRaaS, where companies offload data replication and restoration ...

SearchStorage

  • ZFS

    ZFS is a local file system and logical volume manager created by Sun Microsystems to control the placement, storage and retrieval...

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

  • GlusterFS (Gluster File System)

    GlusterFS (Gluster File System) is an open source distributed file system that can scale out in building-block fashion to store ...

SearchSolidStateStorage

  • Tier 0

    Tier 0 (tier zero) is a level of data storage that is faster, and perhaps more expensive, than any other level in the storage ...

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

  • SSD caching

    SSD caching, also known as flash caching, is the temporary storage of data on NAND flash memory chips in a solid-state drive so ...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close