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178                                            CHAPTER 10        Simulation

                                 Random devices are items such as dice, coins, and computers or calculators.
                                 These devices generate what are called random numbers. For example, when a
                                 fair die is rolled, it generates the numbers one through six randomly. This
                                 means that the outcomes occur by chance and each outcome has the same
                                 probability of occurring.
                                   Computers have played an important role in simulation since they can
                                 generate random numbers, perform experiments, and tally the results much
                                 faster than humans can. In this chapter, the concepts of simulation will be
                                 explained by using dice or coins.




                     The Monte Carlo Method


                                 The Monte Carlo Method of simulation uses random numbers. The steps are

                                   Step 1: List all possible outcomes of the experiment.
                                   Step 2: Determine the probability of each outcome.
                                   Step 3: Set up a correspondence between the outcomes of the experiment
                                            and random numbers.
                                   Step 4: Generate the random numbers (i.e., roll the dice, toss the coin,
                                            etc.)
                                   Step 5: Repeat the experiment and tally the outcomes.
                                   Step 6: Compute any statistics and state the conclusions.
                                                                                                       1
                                   If an experiment involves two outcomes and each has a probability of ,
                                                                                                       2
                                 a coin can be tossed. A head would represent one outcome and a tail the
                                 other outcome. If a die is rolled, an even number could represent one
                                 outcome and an odd number could represent the other outcome. If an
                                                                                           1
                                 experiment involves five outcomes, each with a probability of , a die can be
                                                                                           5
                                 rolled. The numbers one through five would represent the outcomes. If a six
                                 is rolled, it is ignored.
                                   For experiments with more than six outcomes, other devices can be used.
                                 For example, there are dice for games that have 5 sides, 8 sides, 10 sides,
                                 etc. (Again, the best device to use is a random number generator such as a
                                 computer or calculator or even a table of random numbers.)

                                 EXAMPLE: Simulate the genders of a family with four children.

                                 SOLUTION:

                                 Four coins can be tossed. A head represents a male and a tail represents
                                 a female. For example, the outcome HTHH represents 3 boys and one girl.
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