Teaching Monte Carlo Simulation in a Business Analytics Course
David Perkins · DOAJ (DOAJ: Directory of Open Access Journals) · 2021
This paper provides an example for teaching Monte Carlo simulation principles in a business analytics course. Specifically, this paper presents a spreadsheet-based Monte Carlo simulation model for a 90-day binary options investment horizon using the Martingale investment strategy with relaxed market assumptions. The model is designed for use in a spreadsheet-based analytics course. A proposed model is presented and associated simulation results are discussed. Teaching suggestions are provided throughout the paper. Selected foundational statistics topics and spreadsheet techniques are addressed in this paper.