Case Study: University of Toronto achieves hands-on Monte Carlo risk-analysis training with Palisade DecisionTools Suite

Rotman School of Management Students Learn to Make Key Financial Decisions Using Monte Carlo Simulation

The University of Toronto’s Rotman School of Management faced the challenge of equipping students with practical skills to include risk in financial decision-making and to prepare them for firms that use Monte Carlo simulation. Adjunct Professor Asher Drory adopted Palisade’s DecisionTools Suite—especially @RISK and PrecisionTree—to teach Monte Carlo simulation and decision-tree analysis in his graduate-level Financial Management course.

Palisade’s software is installed on all computers in the Rotman Finance Laboratory and is used to teach roughly 200 graduate students each year how to model working capital, capital budgeting and new-product decisions. By using @RISK for probabilistic forecasts of financial statements and free cash flows and PrecisionTree for decision trees, students gain hands-on experience with industry-standard tools, improving readiness for corporations that apply Monte Carlo methods.

University of Toronto

Asher Drory

Adjunct Professor of Finance