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5 Monte Carlo Simulation: Are We There Yet?
Dootika Vats1, James M. Flegal2, and Galin L. Jones3
1Indian Institute of Technology Kanpur, Kanpur, India
2University of California, Riverside, CA, USA
3University of Minnesota, Twin‐Cities Minneapolis, MN, USA
1 Introduction
Monte Carlo simulation methods generate observations from a chosen distribution in an effort to estimate unknowns of that distribution. A rich variety of methods fall under this characterization, including classical Monte Carlo simulation, Markov chain Monte Carlo (MCMC), importance sampling, and quasi‐Monte Carlo.
Consider a distribution
