Key Concepts: Simulations

Definition

A simulation is an experiment that models a real-world situation using random devices (coins, dice, random number generators).

Steps for a Simulation

• 1. Define the problem and what outcome you want to estimate.
• 2. Choose a model that has the same probabilities as the real situation.
• 3. Run many trials of the simulation.
• 4. Collect and analyze the results.
• 5. Draw conclusions about the real situation.

Key Ideas

• More trials generally give more reliable results (Law of Large Numbers).
• Simulations are useful when theoretical probability is hard to calculate.