When the scientists for the Manhattan project needed to understand fully all the risks that were associated with splitting an atom. In order for that to happen they needed a way to simulate different outcomes using variable inputs. They worked tirelessly to compute the outcomes using different iteration using a range of input. This was the birth of the Monte Carlo Simulation.
Real Estate investors make assumptions when creating models to see if an investment will have an above average return. In order to more fully understand the impact of the assumptions a Monte Carlo Simulation is needed to understand risk. My project consisted of creating a simulation that allowed the investor to test different inputs to see their impact on the overall returns of the investment.
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