Spreadsheet software is an effective tool for simulating dynamic stochastic
systems such as mineral processing plants. The two-product formula is used
to show how to set up a Monte Carlo simulation in a spreadsheet template a
nd how to calculate variances of dependent variables. The key to a reliable
and realistic simulation model is to obtain unbiased estimates for all ind
ependent variables and variances in the set that defines the stochastic sys
tem. Monte Carlo simulation is also a powerful tool for optimizing sampling
procedures, for applying sensitivity analysis and for designing and evalua
ting experiments.