What is meant by Monte-carlo simulation? (would like an elaborated answer with some references)
There are times when any realistic 'answer' has to incorporate some degree of randomness. For example, when interpolating missing data in a rainfall time-series. You can do this 'informally', or through a slightly more rigorous 'Monte-Carlo' approach - there are several possible ways to deal with such problems. J.E. Gentle's book; Random Number Generation and Monte Carlo Methods, is a good read, although being 2003, it's starting to look a bit dated. But it's more than enough to get you started, and then the rest you can do with off-the-shelf software. 

Alternatively, as Farrenthorpe points out, the Wikipedia reference may give you all you need to know.