x Contents 10 Simulation 438 10.2.2 The Rejection Method 442 10./mulating from Discrete Distrbutions. 10.4nG Antithe 10 Variance Reduction by Conditioning 444505 l0.4.3 Control Variates.。. 3 453 Self-Test Problems and Exercises. 4 Answers to Selected Problems 457 Solutions to Self-Test Problems and Exercises 461 Index 521 x Contents 10 Simulation 438 10.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438 10.2 General Techniques for Simulating Continuous Random Variables . . 440 10.2.1 The Inverse Transformation Method . . . . . . . . . . . . . . . 441 10.2.2 The Rejection Method . . . . . . . . . . . . . . . . . . . . . . . 442 10.3 Simulating from Discrete Distributions . . . . . . . . . . . . . . . . . . 447 10.4 Variance Reduction Techniques . . . . . . . . . . . . . . . . . . . . . . 449 10.4.1 Use of Antithetic Variables . . . . . . . . . . . . . . . . . . . . 450 10.4.2 Variance Reduction by Conditioning . . . . . . . . . . . . . . . 451 10.4.3 Control Variates . . . . . . . . . . . . . . . . . . . . . . . . . . 452 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 Self-Test Problems and Exercises . . . . . . . . . . . . . . . . . . . . . 455 Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455 Answers to Selected Problems 457 Solutions to Self-Test Problems and Exercises 461 Index 521