MEASURING THE SENSITIVITY OF DIFFERENT MONTE CARLO MODELS IN FORECASTING AIRLINE STOCK PRICES

Purpose- Monte Carlo Models are widely utilised by scientific research in a variety. Two research models are argued and designed regarding the Quasi and Pseudo Monte Carlo models in this paper. Methodology- The main research questions are formed here as “Which Monte Carlo model can give more effective results to USA Airline investors?”. There is a utilisation problem of Monte Carlo Models by investors. The research also will help to fill this gap. On the other hand, Sobol and Halton sequences are utilized to develop Quasi Monte Carlo Model. Findings- Quasi-Monte Carlo Models are given more real results than Pseudo Monte Carlo Models, especially in high number (5000) iterations. The results are specifically important for investors. The main disadvantage of the research is a random timespan that is out of a crisis or special event. Conclusion- According to research results of bias (the approximation to reality), the Quasi-Monte Carlo Model gives more efficient results than the Pseudo Monte Carlo Model regarding accuracy and sensitivity. Investors in the American Air Carriers financial market should be aware of this important reality. Keywords: Monte Carlo models, American Airlines, stock prices JEL Codes: B26, 018, R11