BHCC Characteristics of Random Numbers in Simulation Models Essay

Since we know that no computer algorithm can generate truly random numbers, explain two critical characteristics of a stream of pseudo random numbers in order for them (or the generator that produced the stream) to be appropriate for use in simulation models?

5. Consider the following game of chance involving rolling a pair of dice. In this game each
“turn” consists of rolling a pair of dice one time. If the total of the showing dots is greater
than 8, the player wins. The player pays $25 for each turn and is given $100 for each
winning turn. Note: The player has to pay the $25 even if the player wins that turn.
a) Using Monte Carlo simulation (with 10 replications) to estimate the expected payout
(the amount that the player wins). Use the following table of 10 random “rolls” of a
pair of dice.
b) Determine the expected payout analytically.
e) Is your estimate a “good” estimate in terms of accuracy? Why or why not?
(20 points)
Roll
1
2
3
4
5
6
7
8
9
10
Die 1
2
5
3
4
2
1
3
6
6
4
Die 2
2
2
6
4
6
3
4
1
1
5