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Run a Monte Carlo simulation to estimate the probability P(S 1/ n S + 1/ n) when = 0.2 and n = 10, 20, 80,
Run a Monte Carlo simulation to estimate the probability P(S 1/ n S + 1/ n) when = 0.2 and n = 10, 20, 80, 160. Hint: For every n considered, do the following m = 10000 times: generate a random variable S with the same distribution as S and record whether |S0.2| 1/ n. The Monte Carlo estimate of the desired probability is the number of times this happened divided by the total number of simulations, m = 10000.
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