Page 100 - DCAP601_SIMULATION_AND_MODELING

Simulation and Modelling

Notes 6.5 Self Assessment

Fill in the blanks:
1. Monte Carlo methods are often used when simulating physical and ................... systems.
2. An ................... is a notification that occurs in response to an action
3. ................... Method is used for uniform random numbers.
4. The ................... distribution is hardly ever used straightforwardly in any econometric
model.
5. If a ................... distribution function and density are obtainable, but no analytical formula
for the inverse.

6. The most significant non-uniform distribution is the standard normal, which, unluckily,
does not have a ...................
7. The ................... partitions the standard normal thickness into horizontal blocks of equal
area.
8. Testing the normal RNG is possibly more significant than the fundamental uniform, as it
offers the basis leading econometric simulation ...................
9. The origins of the approach can be traced back to Lord Raleigh who used it to develop
approximate solutions to simple ................... differential equations.
10. Monte Carlo methods are often used when simulating ................... and mathematical
systems.
11. Monte Carlo methods are useful for phenomena with significant uncertainty in inputs,
such as the calculation of ................... in business.
12. Uses of Monte Carlo methods require large amounts of ...................
13. Monte Carlo methods have recently been applied in game playing related ...................
theory.
14. The opposite of Monte Carlo simulation might be considered deterministic using ...................
estimates.

15. A refinement of this method is to somehow make the points random, but more likely to
come from regions of high contribution to the integral than from regions of .....................

6.6 Review Questions

1. Explain why the polar technique is simple to execute, but not chiefly fast?
2. “Monte Carlo simulation are often encountered in the and simulation literature”.
Comment.
3. “The Monte Carlo label for the methodology is, in fact, attributed to this group”. Elaborate.
4. Do you think Random methods of computation and experimentation can be arguably
traced back to the earliest pioneers of probability theory?
5. Discuss the Applications of Monte Carlo.
6. Describe the Integration of Monte Carlo and its methods.
7. Describe the optimization of Monte Carlo and its methods.
8. Probabilistic formulation of inverse problems leads to the definition of a probability
distribution in the model space. Give reasons

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