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What does it do?  | Monte Carlo analysis is a decision-making and problem-solving tool used to evaluate a large number of possible scenarios of a process. Each scenario represents one possible set of values for each of the variables of the process and the calculation of those variables using the transfer function to produce an outcome Y. By repeating this method many times, you can develop a distribution for the overall process performance. Monte Carlo can be used in such broad areas as finance, commercial quality, engineering design, manufacturing, and process design and improvement. Monte Carlo can be used with any type of distribution; its value comes from the increased knowledge we gain in terms of variation of the output |
Why Use? 
| Performing a Monte Carlo analysis is one way to understand the variation that naturally exists in your process. One of the ways to reduce defects is to decrease the output variation. Monte Carlo focuses on understanding what variations exist in the input Xs in order to reduce the variation in output Y |
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