March 28, 2010
Monte Carlo
monte carlo
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Monte Carlo Experiment: Is it necessary to introduce a randomly generated error term?
I'm putting together an OLS monte carlo experiment that looks at alternative methods of modelling a certain constructed dependent variable. Is it necessary for me to artificially generate an "error term" for my constructed dependent variable?
It depends on the details of what you want to model, but in general you want to add an realistic error term.
See here for examples:
http://shazam.econ.ubc.ca/intro/index.html
Sporting a Slight Spring in their Step
Reinsurance buyers land in Monte Carlo with an upper hand in their contract negotiations with reinsurers.
Monte Carlo
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