In other words, is there more to Monte Carlo simulation than sampling a set of parameters from a distribution, and running a simulation of a model with those parameters many times?
In: Mathematics
Pretty much. When we were retiring they ran a Monte Carlo simulation, basically taking our assets and spending and running 1000 simulations, each with different probabilities. At the end of that they were basically able to say in 1000 different scenarios, more than 950 times we would have enough assets to cover ourselves in retirement. Or, put another way, a 95% chance that we would be fine.
The idea behind a Monte Carlo simulation is that you want to look at a broad range of different possible scenarios and determine how many positive outcomes you would have.
Monte Carlo is a generic term for any simulation where you run multiple trials with random inputs.
So yes, you have the gist of it.
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