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In this course, you’ll learn how to quantify and model uncertainty by using Monte Carlo simulation.

Traditional scenario analysis relies on 2 or 3 “best case” or “worst case” situations that are rarely scientific in nature. Businesses can benefit greatly from improved modeling of risk and uncertainty, by using even basic Monte Carlo simulation.

Using this technique, we can quantify and simulate scenarios that include multiple uncertainties at the same time.

This course will start from the basics, and work through five scenarios that will help you master the basics of Monte Carlo Simulation.

Using these scenarios, you’ll learn how to quantify uncertain scenarios in a more meaningful way to help make business decisions.

Modeling Risk with Monte Carlo Simulation learning objectives

Upon completing this course, you will be able to:

  • Explain the main concepts of Monte Carlo simulation
  • Use historical observations to estimate the probability distributions of data
  • Simulate many possible outcomes of uncertain variables using Python
  • Summarize the distribution of scenarios using confidence intervals
  • Interpret the output of Monte Carlo simulation results and use it to guide business decisions

Who should take this course?

Business Intelligence derives value from descriptive, backward-looking metrics. To provide the next level of value we must start to consider future scenarios. Modeling uncertainty and scenarios is a key part of this forward-looking skillset, and this Monte Carlo course is a perfect introduction to that world.

Modeling Risk with Monte Carlo Simulation

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Level 4

Approx 4h to complete

100% online and self-paced

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What you'll learn

Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Financial Modeling & Valuation Analyst (FMVA)® Certification
Modeling Risk with Monte Carlo Simulation is part of the Financial Modeling & Valuation Analyst (FMVA)® certification, which includes 39 courses.
  • Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
  • Career Prep Investment banking and equity research, FP&A, corporate development
All Capital Markets & Securities Analyst (CMSA)® Courses
Modeling Risk with Monte Carlo Simulation is part of the Capital Markets & Securities Analyst (CMSA)® certification, which includes 40 courses.
  • Skills Learned Trading strategies used in the finance and capital markets
  • Career Prep Work in capital markets, whether on the buy-side or the sell-side
Business Intelligence & Data Analyst (BIDA)® Certification
Modeling Risk with Monte Carlo Simulation is part of the Business Intelligence & Data Analyst (BIDA)® certification, which includes 32 courses.
  • Skills Learned Data visualization, data warehousing and transformation, data modeling and analysis
  • Career Prep Business intelligence analyst, data scientist, data visualization specialist

What our students say

Fantastic course
I salute u CFI/ALX for a great course like this

Isaac Arthur

Very practical and engaging
I loved every single bit and definitely, I have learned a lot! The concepts are explained in an easy-to-understand format. The BIDA course has made me believe that anyone can learn data science! ☺️

Janat Birungi

Finally I understand the Monte Carlo Simulation
Its is great short course to get started with Monte Carlo Simulation. Concepts are explained really well.

Masood ur Rehman

Modeling Risk with Monte Carlo Simulation in Python
The course is enriching. However, you need to have access to python to excel.

Carlos Fernandes

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Frequently asked questions

What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
Can I download the Excel files and financial modeling templates for the course?
Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
How long do I have to complete the courses?
You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.
Are CFI courses officially accredited?
Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.
Are there any additional fees or costs?
None! The bundle price includes everything and there are no additional fees or charges to earn your digital certification. You can see our enrollment fees listed here.
What currency are your courses priced in?
All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.
How do I earn my certificates?
Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.
How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
Can I email the instructor if I have questions?
While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.
Will these courses help me advance my career?
Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
More Questions?
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