Great question. Monte Carlo analysis is basically multiple simulations of something occurring, and gathering the results. It could be climate change for example, with the results on ocean water levels simulated for each 0.01 percent increase in temperature (giving us 1000 outcomes to view). Or it could be our budget, with the cost of materials increasing. Sensitivity analysis or a tornado chart measures the range of impact of a few things (like materials cost, people cost, system costs) on something else (i.e. our budget again). Or it could be multiple Risks and their range of impact on our schedule or our quality or budget. Hope this helps 🙂
How about a Monte Carlo analisys with excel video?
Hi David,
Could you please clarify more when do we need to use the Monte Carlo and Sensitivity analysis ?
Great question. Monte Carlo analysis is basically multiple simulations of something occurring, and gathering the results. It could be climate change for example, with the results on ocean water levels simulated for each 0.01 percent increase in temperature (giving us 1000 outcomes to view). Or it could be our budget, with the cost of materials increasing. Sensitivity analysis or a tornado chart measures the range of impact of a few things (like materials cost, people cost, system costs) on something else (i.e. our budget again). Or it could be multiple Risks and their range of impact on our schedule or our quality or budget. Hope this helps 🙂
@@davidmclachlanproject Thanks a lot !!
😮😮l9
10:29