Simulation, Third Edition (Statistical Modeling and Decision Science) [Hardcover]

Sheldon M. Ross (Author)

Book Description

Publication Date: January 10, 2002 | ISBN-10: 0125980531 | ISBN-13: 978-0125980531 | Edition: 3

Sheldon Ross' Simulation, Third Edition introduces aspiring and practicing actuaries, engineers, computer scientists and others to the practical aspects of constructing computerized simulation studies to analyze and interpret real phenomena. Readers learn to apply results of these analyses to problems in a wide variety of fields to obtain effective, accurate solutions and make predictions about future outcomes.

This new edition provides a comprehensive, in-depth, and current guide for constructing probability models and simulations for a variety of purposes. It features new information, including the presentation of the Insurance Risk Model, generating a Random Vector, and evaluating an Exotic Option. Also new is coverage of the changing nature of statistical methods due to the advancements in computing technology.

Editorial Reviews

Review

"The book serves as an informative text and valuable reference...Whether as a text or a elementary reference, this book is indeed worth owning."
- JOURNAL OF THE AMERICAN STATISTICAL ASSOCIATION

From the Back Cover

The third edition of Sheldon Ross' best-selling Simulation provides a practical
introduction to constructing computerized simulations for analyzing and interpreting
real phenomena. These simulations are applied to problems in a wide variety of
fields, including actuarial science, engineering, mathematics, and physical sciences,
to obtain effective, accurate solutions.
SIMULATION
Simulation, Third Edition includes new material on the insurance risk model,
generating a random vector, and evaluating an exotic option. Also new is coverage
of the changing nature of statistical methods in practice, as a result of advances in
computing technology.
FEATURES
* Presents the statistics needed to analyze simulated data, as well as for validating
the simulation model.
* Provides applied examples throughout the text—such as multiple server queuing
methods, inventory control, and exercising stock options—to illustrate and
motivate the theory.
* Stresses variance reduction, including control variables, their use in estimating
the expected return at blackjack, and their relation to regression analysis.
* Includes a chapter on Markov chain Monte Carlo methods.
* Contains unique material on the alias method for generating discrete
random variables.
"...the goals mentioned in the preface are exactly what an actuary would want with
respect to simulation. Knowing how to use simulation to analyze a model, knowing
how to generate values of random variables from different distributions, when to stop
a simulation, etc. are all topics that can be used by actuaries in applications such
as cash flow testing, and are topics that are to be tested on actuarial exams." William B. Frye, Ball State University

See all Editorial Reviews

Product Details

• Hardcover: 274 pages
• Publisher: Academic Press; 3 edition (January 10, 2002)
• Language: English
• ISBN-10: 0125980531
• ISBN-13: 978-0125980531
• Product Dimensions: 9.3 x 6.2 x 0.7 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 5.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #1,403,215 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

3 of 3 people found the following review helpful:

5.0 out of 5 stars Excellent review of simulation techniques at an intermediate level., August 21, 2007

By 

Lars Ängquist (Malmö (Sweden)) - See all my reviews
(REAL NAME)   

This review is from: Simulation, Third Edition (Statistical Modeling and Decision Science) (Hardcover)

According to the books I have consulted by S. M. Ross, I consider him to

be a tremendous author, with this book being my absolute favourite. It

is inspirational, clear, creative and (most of all) fun to read.

Starting off from the very basics regarding probability, random numbers

and generation of random variables, Professor Ross steadily guides the

reader through, for instance, simulation with respect to some queueing

systems, validation techniques (e.g. goodness-of-fit tests;

Kolmogorov-Smirnov tests), the standard MCMC-methods and various variance

reduction techniques. The latter chapter is the one that I found most

enlightening including, for instance, a certainly rewarding section on

importance sampling (weighted simulation). Throughout, a lot of

well-chosen examples enhance students/readers understanding and interest

of the subject.

One might note that this is by no means the most advanced or complete book

on Monte Carlo simulation out there, see e.g.

Monte Carlo Statistical Methods (Springer Texts in Statistics)

or

Stochastic Simulation: Algorithms and Analysis (Stochastic Modelling and Applied Probability),

rather it evolves at an intermediate level covering a few more advanced

concepts as, for example, coupling from the past. But, having this in

mind, this is the book to get. Pure concentrated fun (xiii+274 pages).

Final note: In 2006 the fourth edition was launched. [Simulation, Fourth Edition]

27 of 42 people found the following review helpful:

5.0 out of 5 stars A reader from Saudi Arabia, August 22, 1999

By A Customer

This review is from: Simulation, Second Edition: Programming Methods and Applications (Statistical Modeling and Decision Science) (Hardcover)

This is an excelent textbook explaining what simulation means and how to deepen your knowalge. You have to be a good programmer in order to use this book (and simulation generally)and the author should have added an andex for such a language and how its connection with simualtion ( C or C++) although my experience would elect MATLAB as prefernce!! This text does not requir any prior experience regarding simulatin although taking a course in statistics and probability would be advantageous!!