Simulation

The third edition of Sheldon Ross' best-selling Simulation provides a practical introduction to constructing computerized simulations for analyzing and interpreting real phenomena. These simulations are applied to problems in a wide variety of fields, including actuarial science, engineering, mathematics, and physical sciences, to obtain effective, accurate solutions. SIMULATION Simulation, Third Edition includes new material on the insurance risk model, generating a random vector, and evaluating an exotic option. Also new is coverage of the changing nature of statistical methods in practice, as a result of advances in computing technology. FEATURES * Presents the statistics needed to analyze simulated data, as well as for validating the simulation model. * Provides applied examples throughout the textsuch as multiple server queuing methods, inventory control, and exercising stock optionsto illustrate and motivate the theory. * Stresses variance reduction, including control variables, their use in estimating the expected return at blackjack, and their relation to regression analysis. * Includes a chapter on Markov chain Monte Carlo methods. * Contains unique material on the alias method for generating discrete random variables. "...the goals mentioned in the preface are exactly what an actuary would want with respect to simulation. Knowing how to use simulation to analyze a model, knowing how to generate values of random variables from different distributions, when to stop a simulation, etc. are all topics that can be used by actuaries in applications such as cash flow testing, and are topics that are to be tested on actuarial exams." William B. Frye, Ball State UniversityRoss, Sheldon M. is the author of 'Simulation', published 2001 under ISBN 9780125980531 and ISBN 0125980531.