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Simulation for Data Science with R

You're reading from   Simulation for Data Science with R Effective Data-driven Decision Making

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Product type Paperback
Published in Jun 2016
Publisher Packt
ISBN-13 9781785881169
Length 398 pages
Edition 1st Edition
Languages
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Author (1):
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Matthias Templ Matthias Templ
Author Profile Icon Matthias Templ
Matthias Templ
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Table of Contents (13) Chapters Close

Preface 1. Introduction 2. R and High-Performance Computing FREE CHAPTER 3. The Discrepancy between Pencil-Driven Theory and Data-Driven Computational Solutions 4. Simulation of Random Numbers 5. Monte Carlo Methods for Optimization Problems 6. Probability Theory Shown by Simulation 7. Resampling Methods 8. Applications of Resampling Methods and Monte Carlo Tests 9. The EM Algorithm 10. Simulation with Complex Data 11. System Dynamics and Agent-Based Models Index

Real random numbers


Generated real (true) random numbers should be realizations of independent identically distributed random variables, and they should be unpredictable, meaning that the next generated number is unpredictable from the previously generated random numbers. The lottery and gambling industries, for example, rely on them. But are true/real random numbers also useful in statistics? Before answering this question, we will discuss real random number generation.

As a source of random numbers, the following random number generators might be used:

  • Flipping a coin, rolling dice, roulette, and so on

  • The decaying of a radioactive source

  • Noise from the atmosphere (www.random.org)

It can be observed that a physical process is behind the generation of true random numbers.

By generating, for example, a sequence of zeroes and ones, these bits should be equally likely and independently occur from each other. To evaluate this property, statistical tests can be used.

However, true random number generators...

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