# Empirical loss distribution

#### Ened

##### New Member
On slide 35 you write that "Monte Carlo simulation can fill in the gap", but how can we run a MC simulation without a model? That is the essence behind MC in my opinion.

#### David Harper CFA FRM

##### David Harper CFA FRM
Staff member
Subscriber
Ened,

It's merely a summary extract from Linda Allen 5.2.2.1; i.e., Monte Carlo simulation can "fill in the gaps" where empirical distributions are not useful due to lack of data.

David