What are the success tolerances in the Monte Carlo simulation?
• Success tolerances define the success or failure of an outcome. • A projection is tabulated as a failure if it produces an accumulated deficit greater than the amount entered in the Annual Cash flow DeficitTolerance field. • By indicating a deficit tolerance, it is assumed that in any given year, the clients would be willing and able to service an accumulated debt of that amount. • If Perform Goal Analysis is selected, goal tolerance levels should be set. • Goal tolerances define the success or failure of a particular goal. • If the analysis outcome projects savings plus goal tolerance to be less than the goal, the goal is flagged as a failure.
