# Excel Modelling and Simulation

Simulation & modelling is one of the most exciting operations that you can do in Excel. We have written models the long way and the shorter way, and Excel can be a real time saver.

## Modelling & Simulation

There is no better way of ‘getting under the skin’ on a problem than to simulate and model it.  Excel is an excellent platform for both, and we at  The Excel Experts recommend Excel for your next modelling or simulation project.  Especially when paired with a Monte Carlo simulation, an Excel spreadsheet can be a simple, and powerful tool for creating just such a  model.

As humans, we are not always very good at assessing risks, or the odds of certain events occuring.  A model will calculate the impact of  the decisions we make (and the uncertainties in the inputs), to assess the  outcomes that we care about, such as profit and loss, ROI or environmental impact for instance.

As such, simulations are often used to help companies assess the ‘likelihood of outcomes’ from taking a particular course of action or decision.  By traversing all possible decision paths, a simulation can give valuable insight into which course of actions should be taken.

## Modelling and simulating in Excel – the advantages

### 1. Harness Excels mathematical abilities with minimal effort

Save development time.  Use VBA and libraries such as  NAG to expand on its abilities when necessary.

### 2. Specialist knowledge on the subject

At The Excel Experts we have specialized expertise, in modelling physical, biological and business systems

### 3. Analyse Data FAST

Use Excel Pivot tables, Data Models, Formulas and Functions. Then use Excel Macros to push your productivity to the next level.

Then display and present your new results, in a stunning dashboard report.

### 5. Connect to data sources with ease

Excel is almost without parallel when it comes to connecting to data sources. If it can’t connect ‘out of the box’ its usually an easy matter to write a data loader for your data.

## The kinds of questions our customers ask us.

What is Monte Carlo Simulation?

A Monte Carlo simulation is a  mathematical technique conducted on a computer;  Which allows us to account for risk in our decision making. In an unpredictable world, such a system can be very useful.

It’s used in many fields of study such as energy, manufacturing and finance as well as project management,transport and environmental, to name a few.

A Monte Carlo simulation thus helps you, the decision-maker, to explore various choices of action, safely and without any real risk.
For each choice of action you explore with the model, you will see a range of possible outcomes, with a predicted likely hood of these outcomes occurring. So you can explore the whole range of possibilities, from conservative ‘hands off,’ through to ‘going for broke.’

What is Excel Modelling and Simulation?

Read the definition of a Mathematical model from wikipedia