Page 61 - F5 Slides 2017-18
P. 61

Simulation











        1 Apply probabilities to key factors in scenario analysis.


        2 Use random numbers to select a particular scenario


            and calculate outcome.


        3 Repeat until build up a picture of possible outcomes



        4 Make decision based on risk aversion.

























       61
   56   57   58   59   60   61   62   63   64   65   66