Instructional Video: Simulation and Bootstrapping

This Chapter 13 Simulation and Bootstrapping Video covers the following key concepts:

  • Monte Carlo Simulation (MCS) – Basic steps
  • Ways to reduce Monte Carlo sampling error
  • Use of antithetic and control variates
  • Bootstrapping method and its advantages over MCS
  • Pseudo-random number generation
  • Situations when bootstrapping is ineffective
  • Disadvantages of the simulation approach
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