Monte Carlo: 100k iteration simulation five times vs 500k iteration simulation once

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I am unknowledgeable about Monte Carlos. What would be the difference in the reliability/accuracy of the final expected value in a Monte Carlo simulation under the following two methods:

1) Run a 100k-iteration Monte Carlo simulation, five times over, get the average of each of the five simulations, and then take the average of the average of those five simulations
2) Run a 500k-iteration Monte Carlo once.

Presumably the second would be more accurate and reliable, but I am not sure how?

In: Mathematics

5 Answers

Anonymous 0 Comments

There are many different types of Monte Carlo methods used for many different purposes. As FriedFred said, in some cases it may take a long time to move away from the initial state, but in others it might be possible to get stuck in certain states so a large number of shorter runs might work better. In other cases it will make no difference.

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