What does simulation mean on Excel?

Answer 1

Simulation in the general sense means to create something that is similar to a real situation. Excel can be used to do some simulation or models in terms of data, so that businesses can see what would happen under different circumstances. It is not just business people that can use these types of things. Scientists, statisticians, mathematicians and almost anyone who deals with numbers in some form or other can use a spreadsheet to create simulations. They can then test theories and see what happens with different sets of figures very quickly. They don't need to have actual real data to do it. A statistician could use a simulation to test potential results of a survey, before the actual survey is done, to see how the spreadsheet can deal with figures it is likely to get.