Using Crystal Ball ® Software To Simplify Simulation Analysis in Excel

Abstract

Using Monte Carlo simulation in the classroom allows students to better model risk inherent in forecasted models. Understanding the usefulness and limitations of Monte Carlo simulation provides students a framework in which to model a variety
of uncertainties in the assumptions and the interrelationships
between the assumptions placed in the model. This paper first
describes how spreadsheet analysis traditionally has been used
to quantify risk. Next the use of Crystal Ball ® software to conduct Monte Carlo simulation is described along with a brief
introduction of some of the capabilities and features of the software.