Get reliable answers to your most important questions
Your organization's success depends on your ability to make accurate forecasts and manage activities that involve uncertainty. Monte Carlo simulation is an analysis method that helps decision-makers understand the impact of risk and uncertainty in financial, project management, cost and other types of predictive models.
SPSS Statistics combines the power of predictive analytics with the what-if capabilities of Monte Carlo simulation to help you:
Use the models and data you have
Monte Carlo simulations performed with SPSS Statistics enable you to use your existing predictive models and data as the starting points for your simulation. Build your predictive models in SPSS Statistics or SPSS Modeler, and specify the strength of the inputs. SPSS Statistics can use existing similar data you have to fit the distribution of the inputs and correct the inputs automatically, saving you time and effort.
The software calculates the results over and over, each time using a different set of random values to produce distributions of possible outcome values. When the simulation is complete, you have a large number of results from the model, each based on random input values.
Monte Carlo simulation techniques available with the latest version of SPSS Statistics include:
After running your simulations, you can use the advanced techniques in SPSS Statistics to analyze your results and create charts and graphs to clearly communicate the potential outcomes to decision-makers in your organization.
When to use Monte Carlo simulation
Monte Carlo simulation can be applied in many industries and business situations to:
Using Monte Carlo simulation, you can quickly analyze all of the possible scenarios and get surprising insights into what is likely to occur, and all of the ways your organization can respond.
Enhancements to Monte Carlo simulation are just a few of the powerful new features included in the latest release of SPSS Statistics. Find out what you've been missing, then contact us to upgrade your software.