AI engineering glossary · Probability
What is Monte Carlo simulation?
Monte Carlo simulation: A technique that estimates a quantity by generating many random samples from a model and averaging the results. It is used when an exact calculation is too hard, and it approximates expectations and probabilities.
Monte Carlo simulation: an example
To estimate pi, throw random points into a unit square: the fraction that fall inside a quarter circle, times 4, approaches 3.14 as points grow.
Related terms
More Probability terms
- Monty Hall problem
- Multiplication rule
- Mutually exclusive events
- Normal distribution
- Outcome
- Partition
- Percentile
- Permutation
Where you learn it
Monte Carlo simulation is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.