The Monte Carlo method is a statistical technique used to estimate numerical results through random sampling. It relies on repeated random sampling to obtain results that can approximate complex mathematical problems, making it useful in various fields such as finance, engineering, and science. This method involves generating random variables and using them to simulate a model or process. By analyzing the outcomes of these simulations, one can derive probabilities, averages, or other statistical measures. The Monte Carlo method is particularly valuable for problems that are difficult to solve analytically, providing insights where traditional methods may fall short.