zak100 Posted June 19, 2020 Share Posted June 19, 2020 Hi, I have a question which I want to solve using MonteCarlo Method Suppose we have a car for sale and a buyer is 65% satisfied with the price of the car, 75% satisfied with the outlook of the car like its body, color, tires and 85% satisfied with the running i.e. the engine? What is the probability that the car would be sold to the said buyer? How we can do a simulation using Monte Carlo Method? I found the answer as: 0.65 * 0.75 * 0.85 = 0.4143 Is this a correct solution? Also please tell me can I use MoteCarlo method for one person? Zulfi. Link to comment Share on other sites More sharing options...
mathematic Posted June 20, 2020 Share Posted June 20, 2020 You have assumed the buyer's "satisfactions" are independent, which may not be true. 1 Link to comment Share on other sites More sharing options...
zak100 Posted June 21, 2020 Author Share Posted June 21, 2020 Hi, Thanks for your response. I don't know how can I make buyers satisfactions dependent. I am assuming that buyer's satisfaction depends upon price of the car, outlook of the car and engine of the car based upon the probability values. Please guide me how can I make buyer's satisfactions in a proper manner. I think I am not able to understand this concept properly. Please help me to improve this problem and also my solution in the context of MonteCarlo. Zulfi. Link to comment Share on other sites More sharing options...
mathematic Posted June 23, 2020 Share Posted June 23, 2020 Real world complication example: how willing the buyer is willing to pay a given price will strongly correlate how well the care is running. 1 Link to comment Share on other sites More sharing options...
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