Lesson 15: Monte Carlo Simulation

March 13, 2019

Review:

  • Random Variables
  • Stock Market Simulation
  • Portfolio 2 due today

Presentation:

Activity:

  • Use your Stock Market Simulation
  • Generate a 95% Confidence Interval to estimate your retirement savings at age 65.
  • For example, you might estimate your ending balance will be $200,000 +/- $50,000 with 95% confidence
  • Write your confidence interval on your Portfolio (by hand is fine).
  • If done correctly, I will award up to 6 points of extra credit to your Portfolio score (out of 100).
  • [Note: you must attend class to take advantage of this opportunity]

Assignment:

  • Enjoy your Spring Break!

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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