6. Data Analysis and Modeling

Simulation — Quiz

Test your understanding of simulation with 5 practice questions.

Practice Questions

Question 1

Which property distinguishes quasi-random sequences from pseudorandom sequences in Monte Carlo simulation?

Question 2

Which effect does setting a fixed random seed have on simulation outcomes?

Question 3

Using the inverse transform method, which formula generates a Geometric(p) random variable X (support 1,2,…) from U∼Uniform(0,1)?

Question 4

Which transform yields an Exponential(λ) variate X from U∼Uniform(0,1) using the inverse transform method?

Question 5

If the Monte Carlo standard error scales as 1/√n, by what factor must the number of trials n increase to reduce the error by a factor of 3?