Lesson 12: Bootstrapping

December 1, 2025

Review:

• Vendor Sim grading components
  • Business Idea Clarity
  • Use of Vendor Simulation
  • Spreadsheet modification and customization
  • Executive Summary Quality
  • Writing Mechanics
• Schedule
  • Dec 8 – Data Visualization in Google Sheets due
  • Dec 8 – Review for Final Exam
  • Dec 15 – Final Exam 1:00-3:20 in HSB 120

Presentation:

• What is Bootstrapping?
  • Bootstrapping is a simulation method
  • Use your actual data (downloaded, collected, observed).
  • Randomly select values from the sample.
  • Each row of data must have an equal chance of selection.
  • Repeat many, many times (hundreds or thousands) to represent a wide range of outcomes.
  • Use the resulting distribution of simulated values to estimate likely outcomes and uncertainty.
• Why use it?
  • Works well when
    • Distribution is unknown
    • Distribution is not Normal (e.g., skewed)
    • Sample size is large
  • Problematic when
    • Data isn’t representative
    • Sample size is small

Key idea: “Since we don’t know the true population, we use our sample data set as if it is the population and repeatedly draw new random samples (with replacement) to simulate variance.”

Demonstrate Bootstrapping in Google Sheets

Activity:

• Create a bootstrapping simulation with your assigned commodity
  • Download commodity data (1 year daily or 5 years weekly)
  • Use the bootstrap method to simulate changes in commodity price
  • Replicate Bootstrapping in Google Sheets, replacing Bitcoin data with your commodity data.
• Share your simulation files with Rylee, preferably in one Sheets file. Include the following:
  • Coin Toss
  • Roll 2 Dice
  • Lucky 7
  • Simple Craps
  • Vendor
  • Commodity

Assignment:

• Complete the commodity simulation and share your file, due today
• Complete Data Visualization in Google Sheets, due Dec 8