Rolling the Dice

A Monte Carlo simulation is a statistical technique to determine the probability of an event. The analysis is done by computer, because it would be far too tedious to make 500 or more runs of the simulation by hand. It’s commonly used to predict how long your assets will last in retirement. I’ve discovered two lesser known predictive analytic methods named after casino towns.
The Las Vegas Simulation. This simulation measures how likely you are to fly home from Las Vegas with an empty wallet between gambling and buying tickets to Cirque du Soleil and Céline Dion shows.
The Atlantic City Simulation. This simulation assesses the probability of your casino going bankrupt even before you open it.