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The Monte Carlo technique consists of generating many different joint outcomes of random processes ([[:Image:Charles-l-vavra-john-g-kaldi-robert-m-sneider_capillary-pressure_1.jpg|Figure 1c]]) and then observing the behavior of response values that are functions of these outcomes. Such behavior can be characterized by probability density functions (pdf) of the response variables, as depicted on the right of [[:Image:Charles-l-vavra-john-g-kaldi-robert-m-sneider_capillary-pressure_1.jpg|Figure 1c]]).<ref name=Journel_1989>Journel, A. G., 1989, Fundamentals of geostatistics in five lessons: Washington D.C., American Geophysical Union, Short Course in Geology, v. 8, 40 p.</ref>

The [http://energy.cr.usgs.gov/WEcont/chaps/MC.pdf Monte Carlo] technique consists of generating many different joint outcomes of random processes ([[:Image:Charles-l-vavra-john-g-kaldi-robert-m-sneider_capillary-pressure_1.jpg|Figure 1c]]) and then observing the behavior of response values that are functions of these outcomes. Such behavior can be characterized by probability density functions (pdf) of the response variables, as depicted on the right of [[:Image:Charles-l-vavra-john-g-kaldi-robert-m-sneider_capillary-pressure_1.jpg|Figure 1c]]).<ref name=Journel_1989>Journel, A. G., 1989, Fundamentals of geostatistics in five lessons: Washington D.C., American Geophysical Union, Short Course in Geology, v. 8, 40 p.</ref>

For example, the input variables might be porosity (&phi;), oil saturation (S₀), and a binary indicator (I) set equal to 1 or 0 depending on whether the sample location belongs to a certain pay formation. The unique response value is the volume of oil in place defined by a particular function of the various input variables, called a ''transfer function'' (TF). In this example, the transfer function is a summation representing the total volume V.

For example, the input variables might be porosity (&phi;), oil saturation (S₀), and a binary indicator (I) set equal to 1 or 0 depending on whether the sample location belongs to a certain pay formation. The unique response value is the volume of oil in place defined by a particular function of the various input variables, called a ''transfer function'' (TF). In this example, the transfer function is a summation representing the total volume V.