Monte Carlo simulations are a statistical technique used to model and analyze complex systems by generating random samples. They help estimate the probability of different outcomes in processes that involve uncertainty, such as financial forecasting, risk assessment, and project management. By running numerous simulations, one can observe a range of possible results and their likelihoods. These simulations rely on repeated random sampling to compute their results, often using computer algorithms. The name "Monte Carlo" comes from the famous casino in Monaco, reflecting the element of chance involved. This method is widely used in various fields, including finance, engineering, and science.