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

  • smart contract

    A smart contract, also known as a cryptocontract, is a computer program that directly controls the transfer of digital currencies...

  • risk map (risk heat map)

    A risk map, also known as a risk heat map, is a data visualization tool for communicating specific risks an organization faces. A...

  • internal audit (IA)

    An internal audit (IA) is an organizational initiative to monitor and analyze its own business operations in order to determine ...

SearchCloudProvider

  • cloud ecosystem

    A cloud ecosystem is a complex system of interdependent components that all work together to enable cloud services.

  • cloud services

    Cloud services is an umbrella term that may refer to a variety of resources provided over the internet, or to professional ...

  • uncloud (de-cloud)

    The term uncloud describes the action or process of removing applications and data from a cloud computing platform.

SearchSecurity

  • Common Body of Knowledge (CBK)

    In security, Common Body of Knowledge (CBK) is a comprehensive framework of all the relevant subjects a security professional ...

  • rootkit

    A rootkit is a program or, more often, a collection of software tools that gives a threat actor remote access to and control over...

  • Metamorphic virus

    A metamorphic virus is a type of malware that is capable of changing its code and signature patterns with each iteration.

SearchHealthIT

  • clinical trial

    A clinical trial, also known as a clinical research study, is a protocol to evaluate the effects and efficacy of experimental ...

  • Practice Fusion

    Practice Fusion Inc. is a San Francisco-based company that developed a free electronic health record (EHR) system available to ...

  • RHIA (Registered Health Information Administrator)

    An RHIA, or registered health information administrator, is a certified professional who oversees the creation and use of patient...

SearchDisasterRecovery

SearchStorage

  • Red Hat OpenStack Platform

    Red Hat OpenStack Platform is a commercially supported distribution of open source OpenStack software designed to build and ...

  • storage medium (storage media)

    In computers, a storage medium is any technology -- including devices and materials -- used to place, keep and retrieve ...

  • Random Access Memory (RAM)

    Random Access Memory (RAM) is the hardware in a computing device where the operating system (OS), application programs and data ...

SearchSolidStateStorage

  • hybrid hard disk drive (HDD)

    A hybrid hard disk drive is an electromechanical spinning hard disk that contains some amount of NAND Flash memory.

Close