5. a. Write a short note on Monte Carlo Simulation. b. A Company produces 150 cars. But the production rate varies with the distribution. Production Rate 147 148 149 150 151 152 153 Probability 0.05 0.10 0.15 0.20 0.30 0.15 0.05 At present the track will hold 150 cars. Using the following random numbers determine the average number of cars waiting for shipment in the company and average number of empty space in the truck. Random Numbers 82, 54, 50, 96, 85, 34, 30, 02, 64, 47. (Explanation of Monte Carlo Simulation, Calculation/ Solution to the problem)
Answer:- A. Explanation of Monte Carlo Simulation
The Monte-Carlo method is a simulation technique in which statistical distribution functions are created by using a series of random numbers. This approach has the ability to develop many months or years of data in a matter of few minutes on a digital computer.