Stage 1 Define a distribution of possible inputs for each input random variable: Requires recognition of the underlying probability distribution of the process. This may be directly apparent or may require empirical observation of the process under investigation.

Stage 2 Generate outputs randomly from those distributions: Requires the selection of an appropriate random number generator to model the observed probability distribution. Random number generators are generally available in most statistical software packages and Micro Soft Excel.

Stage 3 Perform a deterministic computation using that set of outputs: Involves computing the desired output variable or variables from the generated random numbers.

Stage 4 Aggregate the results of the individual computations into the final result: The aggregation process is dependent on the specific simulation but could be as straightforward as computing the average of the simulated results.