Risk Analysis and Probabilistic Design with Monte Carlo Simulation

Monte Carlo simulation can be used to perform simple relationship-based simulations. The User Defined distribution feature allows you to specify an equation relating different random variables. You can then determine the joint $$pdf$$  for the simulated data set. This type of simulation has many applications in probabilistic design, risk analysis, quality control, etc. More advanced analysis, involving complex relationships, can be performed with advanced software specifically designed for stochastic event simulation such as ReliaSoft's RENO (see http://www.reliasoft.com/RENO).

Example 1: