Applies to:
@RISK 5.x and Up, Industrial Edition
Evolver, all releases

What’s the difference between simulation and optimization? Does simulation just add randomness to an optimal value?

Simulation and optimization answer different questions.

• Simulation evaluates the range and likelihood of outcomes for a fixed set of choices under uncertainty.
  • Simulation explores uncertainty
• Optimization searches for the best set of choices by repeatedly running simulations for different decision values and comparing results. 
  • Optimization uses simulation to find better decisions under uncertainty.

 

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Risk Analysis