Monte carlo simulation

[shishir]

How one should apply monte carlo simulation to non- normal distribution (Non gaussian) data.

 

[Hui]

Excel includes the NormInv() function that can be used for normally distributed data, but Excel has limited non-normal data modelling capabilities beyond that built in.

You need to develop a function to return the inverse of the function that describes your data from a random number

There are a number of Excel addins that can be used to achieve this including those that also do montecarlo simulations. @Risk is one such example of such software.

 

[shishir]

Thank you Hui