What role do random variables play in simulation?

Random variables are fundamental to simulations because they introduce uncertainty and variability, which are essential components when trying to model real-world systems. In many real-life scenarios, outcomes are not deterministic; instead, they depend on various unpredictable factors. For example, in a simulation of a manufacturing process, the time it takes for a machine to complete a task may vary due to random breakdowns or varying production rates. By using random variables, simulations can incorporate this unpredictability, enabling them to more accurately reflect the complex nature of real-world phenomena and produce a wide range of potential outcomes.

This inclusion of variability allows analysts to explore various scenarios and assess the probability of different outcomes, which helps in decision-making processes. When simulations incorporate random variables, they can mimic the randomness found in nature and systems, providing insights that deterministic models cannot offer.