Decision Support Tools Suite - Palisade
This article presents an overview of Palisade’s Decision Support Tools Suite. Palisade is a company that offers a set of tools for decision makers. It is geared towards every industry we can think of, from education to energy resources such as oil and drilling. Palisade offers a suite which is a combination of tools or individual components of the suite that apply to different industries. Our focus is on two of these tools; @Risk using Monte Carlo simulation and PrecisionTree. The company offers a free 15-day trial of the complete suite, a student license for $50.00 and an tutorials for the complete suite. Due to time constraints we opted for demonstrating two clips from each simulation. This will give our audience an idea of how the benefits that decision makers can obtain from a decision support system, in this case the Decision Support Tools Suite. We will begin our demonstration with @Risk using Monte Carlo simulation and finish with PrecisionTree. @Risk and Monte Carlo
@Risk is a risk analysis software that uses the Monte Carlo simulation for Microsoft Excel. The Monte Carlo simulation (“Monte carlo simulation,” 2011) generates multiple possible outcomes in any situation for decision makers. As part of decision making, Monte Carlo simulation provides decision makers the probability of each possible outcome and allows them to assess the potential impact of risk for making the best decision under uncertainty. Monte Carlo simulation is a computerized mathematical technique that enables decision makers to perform quantitative risk analysis and make decisions based on a range of possible outcomes and their probabilities. It develops models of possible results by substituting a range of values or a probability distribution for any uncertainty factor and calculates them repeatedly using a different set of random values from the probability functions to...