Planning for the future isnβt about relying on one prediction, itβs about exploring a range of possible scenarios and being prepared for what might happen. Scenario generation techniques help you create a set of scenarios based on data, giving you a clearer picture of what the future might hold.
In our latest article, we dive into the concept of data-driven scenario generation. We walk you through how to model the deterministic components of a datasetβthose predictable, stable elementsβand then explain how Monte Carlo simulation can be used to model the stochastic components, or the random, uncertain factors.
