Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use a linear congruential generator with parameters a=21,c=31,m=100 a =21, c =31, m =100, and Z 0=35 to generate a series of 60 numbers uniformly

Use a linear congruential generator with parameters a=21,c=31,m=100a=21,c=31,m=100, and Z0=35 to generate a series of 60 numbers uniformly distributed in the interval [0,1].

  • a) Compute and compare the mean and variance of these numbers to those of the expected theoretical Uniform(0,1) distribution (continuous uniform). Explain any differences.
  • b) Use the uniform random numbers from part a) to generate 60 observations of the random daily demand a store observes for a particular product. Historical data show that the daily demand for this product is 0 9% of the time, 1 28% of the time, 2 30% of the time, 3 20% of the time, 4 8% of time, and 5 5% of the time.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Issues In Behavioral Finance

Authors: Simon Grima

1st Edition

1787698823, 978-1787698826

More Books

Students also viewed these Finance questions