To complete this week’s advanced Monte Carlo Risk Analysis assignment, you will download an excel extension: @Risk by Palisade. NOTE: Microsoft Excel software is required.

Step 1: Go to the website: https://www.palisade.com/risk/. Spend a few minutes to review the Palisade platform. We will use @Risk extension which is only one of many analytics products offered in the Palisade Suite. Watch the @Risk overview video.

Step 2: Refresh yourself with Risk Analysis: https://www.palisade.com/risk-analysis/

Step 3: Read about Monte Carlo Simulation and watch the Introduction to Risk Analysis using @RISK https://www.palisade.com/risk/monte_carlo_simulation.asp

Step 4: Click of Start Trial button and request a Trial Version. https://www.palisade.com/risk/ NOTE: This trail version is only good for 15 days. Once the software has installed, you’ll be prompted with a Getting Started Guide.

Step 5: Review the example models (to be familiar with the uses of Monte Carlo): https://www.palisade.com/models/

Step 6: Open the attached Cost Estimation model spreadsheet. This model is already set up with a Monte Carlo simulation. NOTE: For this simulation to work, you have to have downloaded the trial version of the software to get the @Risk function (see step 4 above).

Your assignment:

Using the @Risk Cost Estimation Model, run two Monte Carlo Simulations by using the alternate set of data points. Record your results.

Minimum

Most Likely

Maximum

First Simulation Data

Raw Mats

3,300

4,000

9,000

IT

900

1,500

1,950

Second Simulation Data

Raw Mats

3,500

5,700

13,000

IT

1,200

1,700

2,150

Write a 2-3 page paper documenting the significance of Monte Carlo Simulation and address the following questions for each of the two simulations: (1) what is the total budget to achieve a 95% probability that the project will actually be delivered within this budget? Address why this is important to a project manager; and (2) How much contingency (extra budget) should be included so that this budget level will be achieved with a given degree of confidence? Address why this is important to a project manager.

NOTE: For our purposes, this assignment is to get you familiar with Monte Carlo and its significance to a project manager. The Palisade Suite of products, and @Risk specifically, are very powerful. If you’d like to learn more, here are some resources that go beyond the scope of our course:

Transition Guide: https://help.palisade.com/v8_2/en/Guides/@RISK-Transition-Guide.pdf

Palisade YouTube channel: https://www.youtube.com/user/PalisadeCorp/featured

Would you like to discuss this project or get it done? 

Reach out on WHATSapp at +1 (240) 389-5520

Or 
 Place an order on our website for quick help

Guarantees

A+ Paper
 Timely Delivery
 Zero Plagiarism
 Zero AI