The process of extracting useful knowledge from the huge volumes of data kept in modern computer databases using sophisticated algorithms and statistical techniques.
Deterministic models are simulation models that offer outcomes with no allowance or consideration for variation. They are well suited to predict results when the input is predictable. Contrast with stochastic models.
A Monte Carlo simulation is a technique used to understand the impact of risk and uncertainty in prediction and forecasting models. In finance, it is extensively applied to price complex derivatives, manage financial risk, and facilitate decision-making processes.
