Official blog of Palisade. Tips on making better decisions with analytics, news about the risk and decision analysis field, and updates from Palisade.
Cost Estimating: Triangular vs PERT
December 1, 2022
Continuing with this series of articles introducing cost estimation with @RISK, we will compare the use of the most popular distributions of this technique: the Triangular and the PERT.
We know that cost estimation is one of the most critical parts of project management. In addition, we know that three-point estimation – with PERT or ...
Using Monte Carlo Simulation to Hedge Against Volatile Exchange Rates
November 1, 2022
The US dollar is at its highest level since 2000, up more than 20 percent over other major currencies such as the British pound, the euro, and the yen. The current economic forecast is for more volatility in 2023, which tends to drive further demand for the dollar, seen as a safe harbor investment during periods of uncertainty. However, as ...
This article offers a simple and concise explanation of the Monte Carlo simulation: a technique that combines statistical concepts (random sampling) with the ability of computers to generate pseudo-random numbers and automate calculations.
The key to Monte Carlo simulation is to create a mathematical model of the system, process, or ...