Monte Carlo Probability Distributions

You can download the finished spreadsheet I am working with at www.davidclaytonbrown.com/exc....

[@vijayrao6321]

Your explanations are amazing! Thank you!

[@afeworktsigie781]

Thanks for the tutor and i am having difficulty on using monte carlo for production line optimization any idea.

[@sayednab]

would you mind and share the excel sheet?

[@docbrownexcels]

You can download it at www.davidclaytonbrown.com/excel-resources

[@xjtuxl]

@@docbrownexcels thank you Brown, well explained, I've requested access as well for the file, appreciate if you could share with me.

[@pradeepkandpal7523]

The CDF should've been cumulated to 1 and not 0.83.

[@docbrownexcels]

Hi Pradeep. While it's true that CDFs will accumulate until they equal 1, in this case the last step occurs going from 0.83 to 1. Since we are using an approximate matching function, we have to choose whether to look for the next bigger or next smaller item. I chose to find the next smaller item, so I set up the CDF at using the lower side of each step, hence stopping at 0.83. It could have been set up to use the top side of each step, in which case the steps would have started at 0.17 instead of 0 and would then end at 1. Either set up will work.

[@pradeepkandpal7523]

@@docbrownexcels. I just felt If am missing anything there. Glad you replied. Thanks for the explanation.