Business Technology Article 04 - Some Applications of Random Numbers
In the 2 Monte Carlo books, most of the time, we simulate by generating random variables. In only one case, I needed to apply random numbers differently.
That was in Workout 15 in Part 2. We had a need to select from 1 to 12 bidders in each run. If we generated a number from 1 to 12, we risk having the smaller values (1, 2, 3 . . .) appear more than the rest. The trick was to generate a number N from 1 to 12 then shuffle the table of 12 values then select the first N bidders.
In this article, I will present the following 3 applications of random numbers (including the above shuffling technique).
Method 1: shuffle a set of N entries in a range.
Method 2: randomly select M out of a list of N entries.
Method 3: classify N entries into M groups.
Click Here to download the blank and the solved workouts.
Each worksheet includes a detailed procedure on the method in question.
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