Output Data Analysis for a Single System - Statistical Analysis for terminating simulations

9 important questions on Output Data Analysis for a Single System - Statistical Analysis for terminating simulations

What is the disadvantage of the fixed-sample-size procedure based on n replications?

The analyst has no control over the confidence-interval half-length; for fixed n, the half-length will depend on Var(X).

What assumption is needed for the sequential procedure for obtaining an estimate of mu with a specified relative error that takes only as many replications as are actually needed?

The procedures assumes that X1,...,Xn is a sequence of IID random variables that need not be normal.

When should you use the fixed-sample-size procedure?

If one is performing an exploratory experiment where the precision of the confidence interval may not be overwhelmingly important.
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On what do measures of performance for a terminating siulation depend?

On the state of the system at time 0; care must be taken inchoosing appropriate initial conditions.

What are the two ways in measuring error?

1. Absolute error: |Xbar - mu| = beta.
2. Relative error: |Xbar-mu|\|mu| = gamma.

What is the interpretation of a CI?

If one constructs a large number of independent 100(1-alpha)% CI's, each based on n observations, where n is sufficiently large, the proportion of CI's that contain mu should be 1 - alpha.

On what does the correctnes of the CI depends?

- The asumption that the Xj's are normal random variables.
- n being sufficiently large.

On what does a good or bad approximation of the CI depends?

On the skewness of a distribution.

What are other important measures of performance besides means?

- Probabilities.
- Quantiles.

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