Monte Carlo simulation is a technique that allows an analyst to model the impact of risk and is thus widely used in fields such as finance, project management, energy, manufacturing, engineering, research and development, insurance, oil & gas, transportation, and the environment. The technique allows a decision maker to see a range of possible outcomes and the probabilities they will occur for any choice of action. It shows the extreme possibilities (the outcomes of making very risk decisions, to the outcomes for very conservative decisions), along with all possible consequences in between.Think of a simple example of where you can use simulation modelling and fully describe the problem that the technique could give insight into, and why it is important that the problem is understood. Through this simple example, show how a simulation model could be built and the outcomes analysed. Your example should contain the following: at least two uncertain variables (distributed in anyway you see fit, though some variety in the distributions used is appreciated), and 500 iterations.upload an excel file with answers.
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