MATLAB Implementation of Monte Carlo Simulation Algorithm

Monte Carlo method, also known as statistical simulation method or random sampling technique, is a stochastic simulation approach based on probability and statistical theory. It employs random numbers (or more commonly pseudo-random numbers) to solve various computational problems. This method connects the target problem with a specific probability model and uses computer statistical simulation or sampling to obtain approximate solutions. Key implementation aspects include random number generation using functions like rand() or randn(), probability distribution modeling, and iterative sampling processes.