23.1 Introduction
Generate random numbers and random normal distributions.
Create one-way and two-way tables with what-if analysis.
Perform Monte Carlo simulations and analyze the results, including creating charts to visualize the data.
Use weighted criteria in Monte Carlo simulations.
In this lesson, we will discuss Monte Carlo simulations and how we can run those within Excel. However, to understand what is happening, it is important to review some basics such as random numbers and normal distributions of random numbers. We will also briefly review how to create one-way and two-way tables with what-if analysis and then show you how this applies to Monte Carlo simulations. The final example in the lesson shows how you can create weighted criteria in conjunction with Monte Carlo analyses to perform even more powerful analyses.