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Using Monte Carlo Simulation to avoid Flaw of Averages in investment

Using Monte Carlo Simulation to avoid Flaw of Averages in investment

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Curiousparty Offline
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26-08-2014, 07:07 PM (This post was last modified: 26-08-2014, 07:33 PM by Curiousparty.)
Attached is a simple real life example showing the pitfalls of relying of deterministic computation to conclude that the NPV of the project is positive.

Happy reading Smile

Comments appreciated. tks.


Attached Files
.pdf   Example of Flaw of Ave.pdf (Size: 748.94 KB / Downloads: 17)
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RE: Using Monte Carlo Simulation to avoid Flaw of Averages in investment - by Curiousparty - 26-08-2014, 07:07 PM

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