## Lesson 17: Simulation of Continuous Random Variables

**We will meet via Zoom on Tue, Oct 27 at 11:15**.

Review:

- Assignment 7
- Chuck-a-luck
- Excel automation

Presentation:

- Random Variables
- Discrete Random Variables
- Probability distribution table
- Dice Simulation
- =
*RANDBETWEEN()*

- Continuous Random Variables
- Stock Market simulation next week
- Assume normal distribution
*=norminv(rand(),$B$2,$B$3)*

- Discrete Random Variables

Assignment:

- Stock Market Simulation in Sheets
- Use Annual Stock Market Return data as a starting point

- Modifications
- Generate a 40-year simulation (instead of 30)
- Modify the simulation to add $1,000 to the balance each year
- Make a histogram of your ending balances