Building a simulation model in Risk Solver Add-on is straightforward: You simply build a conventional spreadsheet model, designed for ‘what-if’ analysis. Next, you identify the inputs to your model that are uncertain, and use Distribution functions to describe the uncertainty. Then, you identify the outputs of special interest (such as Net Profit), and use Statistics functions to examine or summarize how they behave in light of the uncertainty.
We'll build the simulation model step-by-step in this section, but you can follow along by clicking Insert Example at $A$1 on the Distribution tab on the Risk Solver Pane. A new worksheet containing the Airline Revenue Management Example Model is inserted into the workbook.