Introduction to Monte Carlo Simulation in Excel 2016

This video provides a simple introduction to how to run a Monte Carlo Simulation (MCS) in Excel. The example is for estimating profits given uncertainty in costs and revenue.

[@nachtalp7500]

It is always unbelievable what gold nuggets one can find in KZbin. Thanks a lot! I thought about to programm something in VBA but I had no clue how build the routines. Very easy approach - GREAT!

[@tbaerg]

Fantastic tutorial. I deployed this in a manufacturing scenario within 30 minutes. Much appreciated!

[@chuckbecker4983]

A simpy wonderful tutorial. I now grasp the fundamental concepts of a Monte Carlo simulation and I learned some new-to-me features of Excel. Thank you!

[@MrSeropamine]

Best explanation for this I have found on KZbin, thank you. I even did a course where this was taught in an engineering risk analysis context- I did the thing but I didn't understand the nuts and bolts, whereas this explains it very clearly.

[@zakirkassam7321]

Videos like these are saving me during online school

[@jhonthestampede]

And saving a lot of money with a monte carlo software haha xD

[@luvsketchimprovvv1781]

thank you very helpful for my corporate finance course! our teacher chose this video specifically.

[@serkankaraman1711]

Fantastic! Thank you very much Maggie for creating a clear and precise tutorial.

[@patrickbhirdo2869]

Great and simple explanation. Agree with some other comments on here that it's one of the most concise explanations I've seen on youtube and on hte internet.

[@thelegolegend1]

This actually worked for my NPV calculation and now I can apply it for my group project, thanks very much!

[@Eng_Kitumesh]

The best explanation out there. Thank you

[@delicious9930]

Wow you’re amazing - All this is a short straightforward video TYVM

[@brigittaadinda]

this is very simple yet answers most of my questions. thank you so much!

[@joerinaldi3418]

Very clear and easy to follow explanation. Thank you for putting this together.

[@moosesnWoop]

Simple and straightforward. I'm self-learning to assist my own investments so I thank you for a simple tutorial.

[@kishan9506]

I don't know about Monte carlo but I have learned some cool Excel tricks in this video.

[@ANJA-mj1to]

What to say or thank you for valuable information how to imply Monte Carlo method in Excel. Despite development of modern numerial and stohastiv methods with many desirable properties, most of hydraulic problems are based on Monte Carlo method BASED ON FINITE ELEMENT AND FINITE VOLUMEN APPROACH + adding yours Content we can assume many desirable concepts. Thank you for all good Excel workout!

[@viktorvondoom9119]

Thanks! I think you just explained my whole assignment

[@1MRNICKER]

Thanks Maggie!

[@Liberty_Freedom_Brotherhood]

I did a Monte Carlo simulation for the risk of me taking about 100x times longer than the video to do a successful simulation: risk = 100%😂

[@junal27]

Thank you, very usefull and clearly explained!

[@megalallulal]

Thanks a lot....you made my day...pretty helpful

[@jessica386m]

I wished my professor taught this quickly and cleared!

[@HarshitSharma-lb3ul]

ohhh, thank you so much for this example! I finally get it!

[@sijokuriakose3895]

wow awesome video. Learned a lot. even some shortcuts in excel lol

[@peakfeeling7311]

Thank you very much

[@MrGroganmeister]

That was very helpful. Thanks.

[@QueenChanise]

BLESS YOU!!! THANK YOU SO MUCH

[@deepaktimsina111]

Hi. Very nice tutorial. I have district wise immunization coverage for 60 months (5 yrs). Can I apply Monte Carlo to forecast the coverage for next year?

[@hyunchulkim9707]

Thanks for a nice video. It's helpful.

[@nikhilverma6457]

Really very nice example and explanation. Thanks.

[@longjohnsilverin2468]

Great ! Found it helpful ... Thanks

[@stellaunya5192]

thank you so much

[@kingka0312]

thank you so much for this! instruction makes perfect sense to me 👍

[@FaRosVPL]

This was helpful, thanks!

[@vahidvahdat7130]

Pretty helpful, and amazingly simple, Thank you so much for your help

[@DanaJomaa]

Thank you for the video

[@steveadams5085]

Thanks for this! Super helpful.

[@bigfriki]

Awesome video. Simple and clear :)

[@hawaiisunkissselftanner4890]

Thanks! It is very clear!

[@Gracethedog101]

Maggie, do you offer formal training? I found your approach easy to learn from.

[@tomatosquare4012]

amazing explanation! 😃

[@laskuri1393]

good demonstration.

[@konalsharma6040]

Thanks a lot, Very well explained , It was really Helpful

[@nikhilverma6457]

Very helpful. Thanks.

[@mikechapman2593]

This is amazing! Love your work!

[@ApoorvaDixit1488]

Very nicely explained. But should it give possible negative value of profits when there is no chance of it, if we adjust the Std. Deviation in that way?

[@abrarkhan9806]

It was quite helpful. Thanks

[@guybolt2346]

at 2:34, why does typing the word "Trial" in cell H2 cause the values in row 8 to change when none of the formula you typed are looking at that cell!?

[@6toolbaseball]

Because of the rand() function that is in the worksheet

[@Liberty_Freedom_Brotherhood]

great video, nice work!

[@dex461]

Awesome video! I have a follow up question. So when you are recalculating to pull another random set of values, would you collect all the different randomly calculated values, and pull average, std, etc. on those random simulated values? Or would the better option be to either increase or decease the amount of trials?

[@BalochistanWatan]

Anybody got the answer?

[@iniyavankarthikkaran8575]

Hey, really well explained, just wanted to know why you took in risk of loss calculation denominator as 500 please, am I missing something here, sorry if obvious, really appreciate your video :)

[@SamerBajaber]

She had 500 trials total.

[@maggiewinslow2162]

It's because we used 500 trials. We wanted to know what percent showed a lost, not the total number that showed a lost.

[@JalanJalanAjah]

@@maggiewinslow2162 Thank you so much!

[@kostasspanos1984]

very helpful to start ..many thanks

[@Hemzees]

Hi, thank you for this video. I would like to use this in my research and I am using it to simulate vulnerability due to climate change. I wonder what would be more valid; to simulate responses to a questionnaire or to simulate the final score of vulnerability? I hope you can answer my question. Thanks

[@wctyna]

very helpful. thank you!

[@firmanmuntako9886]

hi. thank you.. keep up the good work

[@TheAPUSH]

Amazing! Thank you so much.

[@jj-wz1im]

Hi Maggie, On Risk of Loss, excel does not seem to read cell B12 when I use COUNTIF. It only gives me a % if I hardcode the mean number. Any ideas why that is?

[@smallhousesdesign6663]

Thank you so much

[@chisomnneke8667]

I tried running the simulation on my system,all is working except the risk of loss is changing.the value is just 100% even tho I have tried recalculating ,what do you think it’s the problem ?

[@xlingdai100]

Well, I have a Q for MCS. The calculated mean st min max keeps changing. So how can it apply to work?

[@alangecastelly3137]

Great video!

[@FlywithZahanat]

Good and helpful

[@appknow8253]

How did you come up or find the standard diviation

[@maestro7058]

THANK YOU SO VERY MUCH!!!!!!!

[@sidharthmohanty6434]

Thank you

[@Asoville18]

Thank you 😊

[@hamzatarq7000]

izi n simple ty

[@khadijasajid1490]

Thank you!

[@jiabinchen1934]

Nice!

[@suryakantyadav8427]

when do we use pert distribution?

[@bonzaiii7]

brilliant!

[@sennikau]

Great!

[@ensys1000]

Thanks

[@mariner735]

i got lost at "what if "' sosimply do not understand what is being done and I am looking for a new basic tutorial for the PC not the max

[@ngzhenyiaiden7384]

Thank you (:

[@cx5442]

5:16 Why did you divided the term by 500?

[@maggiewinslow2162]

Because I ran 500 trials.

[@cx5442]

@@maggiewinslow2162 understood, thanks

[@jasontoo]

How is this useful? Your Mean and Std Dev would just converge to the input parameters. e.g. 34500 for the mean.

[@bradk1295]

The mean isn’t very interesting, it’s the other information that makes the simulation useful, such as modeling the number/percentage of times the investment loses money. This was a very simple example, but you can build very complex simulations. It’s a very powerful tool in that has quite a few applications.

[@daviddewis2286]

Jason, it was meant to be a tutorial to explain the basics. It was an excellent tutorial, short and informed, it provides what is required to use the process as we wish. I look forward to your tutorial that incorporates probability density functions.

[@fritzz349]

Gak bisa bahasa Enggres!

[@OgeOliver]

It was very helpful, thank you.

[@FoysalAhmed-ql9zj]

Thank you so much