Monte Carlo simulations is what they used to work out the odds of sub-prime defa... | Hacker News

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		kul on Oct 4, 2008 \| parent \| context \| favorite \| on: XKCD's Randall Munroe runs Monte Carlo on Intrade'... Monte Carlo simulations is what they used to work out the odds of sub-prime defaults in their CDOs.

byrneseyeview on Oct 4, 2008 [–]

I can assure you that they use addition and subtraction far more often than they use the Monte Carlo method. Adjust your behavior accordingly.

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