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November 03, 2005
Monte Carlo Simulation
We used the model with serially correlated errors as an example of simulation exercise.
Monte Carlo simulation allows us to tackle problems that are too difficult for analytic solution. It also helps us determine whether a proposition seems to be true so that we do not spend years trying to prove something that is not true.
How to construct normally distributed random numbers from uniformly distributed random numbers:
Posted by bparke at November 3, 2005 08:56 PM