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The main difference between other spreadsheet models and simulation models is that the input variable cells in the simulation contain random numbers.
Random Numbers in Simulation Modeling
As the term suggests, random numbers are numbers that are chosen by chance at random, from a pool of numbers. All numbers in a given distribution have the same probability of being randomly selected.
Random numbers appear in a given distribution only when two conditions are met: Values are evenly distributed over a given interval or series, and it is impossible to predict future values based on past or present.
For numbers in sequence or distribution to be truly random, they must be independent. Numeral independence means that there is no correlation between successive numbers. In addition, these numbers should appear in the distribution with approximately the same frequency.
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