Data Simulation is a technique used to create artificial data that mimics real-world scenarios. This process allows researchers and analysts to test hypotheses, validate models, and explore outcomes without the need for actual data collection, which can be time-consuming or costly. By using statistical methods and computer algorithms, data simulation generates datasets that reflect the characteristics of real data. This approach is widely used in fields like finance, healthcare, and engineering to predict trends, assess risks, and improve decision-making processes.