Lesson 17: Monte Carlo Simulation

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April 6, 2017 at 9:52 am  •  Posted in s17-busad360 by  •  0 Comments

Thu, Apr 6

Review:

  • Linear Regression in Python
  • Tutoring Available for Python in HSB 121
    • Mon 11-5
    • Tue 12-1, 2:30-5
    • Thu 2:30-5

Presentation:

  • Monte Carlo Simulation

Assignment:

  • Create a simple Monte Carlo Simulation with Python
  • Simulate a simple Dice Game:
    • Roll 2-7, lose
    • Roll 8-12, win
    • Start with $100
      • bet $1 per roll (win pays $1, loss takes $1 bet)
      • roll 100 times and find ending balance (could be negative)
      • simulate 100 outcomes (10,000 total rolls of the dice)
    • Report the mean, median, and standard deviation of your final balances
    • Repeat using 1,000 rolls per outcome (100,000 total rolls of the dice) and report the mean, median and standard deviation of final outcomes

 

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