How Do You Conduct A Simulation Analysis?
Simulation analysis is an effective way of projecting risk and probabilistic behavior in nearly any stochastic system. A good simulation analysis process can help you understand the behavior of elements and systems in business, politics and even large-scale social systems. Follow a few basic steps to conduct a simulation analysis properly. Define your problem. Each simulation attempts to clarify opacities or solve a problem within the system. To properly conduct a simulation analysis, you and your team need to know what part of the system you are trying to understand and the factors which go into the system. Be explicit, detailed and simple in your statement of the problem. Identify appropriate inputs and outputs in the system. While you should have a clear idea of all the total inputs and outputs in the system you’re analyzing, you should also be able to definitively identify which inputs and outputs are relevant to your simulation analysis. Narrow the variables and inputs and outputs
