Introduction Recently a student in another course came to my office looking for someone “who could explain the Monte Carlo simulation” to her. I was caught a bit off-guard since (a) it was 10 minutes before my geometry class and (b) there is no single Monte Carlo simulation.
After a brief discussion, I found out she wanted to predict stock prices using Monte Carlo simulation, but she thought that the Monte Carlo simulation provided the prediction - she couldn’t say how the actual predictions were being made which is the crucial part.