  Monte Carlo (MC) simulation includes a wide range of stochastic techniques
used to quantitatively evaluate the behavior of complex systems or processes.
Microsoft Excel spreadsheets with Visual Basic for Applications (VBA) software
is, arguably, the most commonly employed general purpose tool for MC
simulation. Despite the popularity of the Excel in many industries and
educational institutions, it has been repeatedly criticized for its flaws and
often described as questionable, if not completely unsuitable, for statistical
problems. The purpose of this study is to assess suitability of the Excel
(specifically its 2010 and 2013 versions) with VBA programming as a tool for MC
simulation. The results of the study indicate that Microsoft Excel (versions
2010 and 2013) is a strong Monte Carlo simulation application offering a solid
framework of core simulation components including spreadsheets for data input
and output, VBA development environment and summary statistics functions. This
framework should be complemented with an external high-quality pseudo-random
number generator added as a VBA module. A large and diverse category of Excel
incidental simulation components that includes statistical distributions,
linear and non-linear regression and other statistical, engineering and
business functions require execution of due diligence to determine their
suitability for a specific MC project.
