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Monte Carlo Simulation is a computer-based simulation technique used to understand and evaluate the effects of uncertainty and variability in various scenarios. It employs randomness and probability to model situations where deterministic models may fall short. This method is commonly used in fields such as finance, engineering, physics, and logistics, among others.
Monte Carlo Simulation offers numerous advantages that make it a valuable tool in decision-making processes. Here are some key reasons why it is crucial in various industries:
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