RESEARCH ARTICLES | RISK + CRYSTAL BALL + ANALYTICS

Excel Simulation Show Down (Part 1) - Defining Inputs and Outputs

Over the last 3 months, we have seen 3 of the 4 major players in the Excel Monte-Carlo Simulation arena introduce new releases. We hear a lot of talk about which tool is best and the truth is there is no perfect answer – it’s a personal thing dictated by user skill, preference and need.

For this reason, we have created a series of videos showing comparing how each tool is used to apply Monte-Carlo simulation to a model / spreadsheet. Our focus will be on :

To keep the playing field level, we have used a simple additive model, which is simply defining a series of distributions (i.e. costs, budget items…), summing them up and analyzing the resulting sensitivity analysis. We have kept things simple, so we are not correlating any of the variables nor using any fancy math.

As you will see, there are definite differences AND similarities regarding how these packages tackle building a model. We are going to focus on those relating to inserting and copying input distributions as well as defining and analyzing model outputs. The objective is to compare the ease, usability and efficiency of each tool and give people the opportunity to choose for themselves which tool reflects their needs and preferences better.

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