Yup, my experience with Monte Carlo simulations is in finance, specifically the Trinity Study. As I understand it, with these kinds of simulations, they say that xx% of the time it will yield a certain threshold result. For example, in the Trinity Study, it's safe to withdraw 4% of one's portfolio every year and there is a 95% chance the portfolio will survive one's entire retirement.
In the case of the IMHE model, it was framed as 100% chance and without any thresholds. That doesn't sound right to me.
Yup, my experience with Monte Carlo simulations is in finance, specifically the Trinity Study. As I understand it, with these kinds of simulations, they say that xx% of the time it will yield a certain threshold result. For example, in the Trinity Study, it's safe to withdraw 4% of one's portfolio every year and there is a 95% chance the portfolio will survive one's entire retirement.
In the case of the IMHE model, it was framed as 100% chance and without any thresholds. That doesn't sound right to me.