Profit Forecast Model Using Monte Carlo Simulation in Excel
Profit forecast is very important for any company. The purpose of this study is to provide a method to estimate the profit and the probability of obtaining the expected profit. Monte Carlo methods are stochastic techniques–meaning they are based on the use of random numbers and probability statistic...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Romanian National Institute of Statistics
2014-01-01
|
| Series: | Revista Română de Statistică |
| Subjects: | |
| Online Access: | http://www.revistadestatistica.ro/wp-content/uploads/2014/04/RRS_12_2013_A3_en.pdf |
| _version_ | 1828764266064248832 |
|---|---|
| author | Petru BALOGH Pompiliu GOLEA Valentin INCEU |
| author_facet | Petru BALOGH Pompiliu GOLEA Valentin INCEU |
| author_sort | Petru BALOGH |
| collection | DOAJ |
| description | Profit forecast is very important for any company. The purpose of this study is to provide a method to estimate the profit and the probability of obtaining the expected profit. Monte Carlo methods are stochastic techniques–meaning they are based on the use of random numbers and probability statistics to investigate problems. Monte Carlo simulation furnishes the decision-maker with a range of possible outcomes and the probabilities they will occur for any choice of action. Our example of Monte Carlo simulation in Excel will be a simplified profit forecast model. Each step of the analysis will be described in detail. The input data for the case presented: the number of leads per month, the percentage of leads that result in sales, , the cost of a single lead, the profit per sale and fixed cost, allow obtaining profit and associated probabilities of achieving. |
| first_indexed | 2024-12-11T02:18:30Z |
| format | Article |
| id | doaj.art-7413c5e738d44671b15d5b2fd25e3278 |
| institution | Directory Open Access Journal |
| issn | 1018-046X 1844-7694 |
| language | English |
| last_indexed | 2024-12-11T02:18:30Z |
| publishDate | 2014-01-01 |
| publisher | Romanian National Institute of Statistics |
| record_format | Article |
| series | Revista Română de Statistică |
| spelling | doaj.art-7413c5e738d44671b15d5b2fd25e32782022-12-22T01:24:07ZengRomanian National Institute of StatisticsRevista Română de Statistică1018-046X1844-76942014-01-0161123340Profit Forecast Model Using Monte Carlo Simulation in ExcelPetru BALOGH0Pompiliu GOLEA1Valentin INCEU 2„Dimitrie Cantemir” Christian University„Dimitrie Cantemir” Christian University„Dimitrie Cantemir” Christian UniversityProfit forecast is very important for any company. The purpose of this study is to provide a method to estimate the profit and the probability of obtaining the expected profit. Monte Carlo methods are stochastic techniques–meaning they are based on the use of random numbers and probability statistics to investigate problems. Monte Carlo simulation furnishes the decision-maker with a range of possible outcomes and the probabilities they will occur for any choice of action. Our example of Monte Carlo simulation in Excel will be a simplified profit forecast model. Each step of the analysis will be described in detail. The input data for the case presented: the number of leads per month, the percentage of leads that result in sales, , the cost of a single lead, the profit per sale and fixed cost, allow obtaining profit and associated probabilities of achieving.http://www.revistadestatistica.ro/wp-content/uploads/2014/04/RRS_12_2013_A3_en.pdfMonte Carlo simulationProbabilitiesProfit forecast |
| spellingShingle | Petru BALOGH Pompiliu GOLEA Valentin INCEU Profit Forecast Model Using Monte Carlo Simulation in Excel Revista Română de Statistică Monte Carlo simulation Probabilities Profit forecast |
| title | Profit Forecast Model Using Monte Carlo Simulation in Excel |
| title_full | Profit Forecast Model Using Monte Carlo Simulation in Excel |
| title_fullStr | Profit Forecast Model Using Monte Carlo Simulation in Excel |
| title_full_unstemmed | Profit Forecast Model Using Monte Carlo Simulation in Excel |
| title_short | Profit Forecast Model Using Monte Carlo Simulation in Excel |
| title_sort | profit forecast model using monte carlo simulation in excel |
| topic | Monte Carlo simulation Probabilities Profit forecast |
| url | http://www.revistadestatistica.ro/wp-content/uploads/2014/04/RRS_12_2013_A3_en.pdf |
| work_keys_str_mv | AT petrubalogh profitforecastmodelusingmontecarlosimulationinexcel AT pompiliugolea profitforecastmodelusingmontecarlosimulationinexcel AT valentininceu profitforecastmodelusingmontecarlosimulationinexcel |