Statistical Simulation


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Statistical Simulation

Statistical simulation involves a repetitive process involving gathering, analyzing data and modeling. Statistical simulation is important when dealing with large sets of data that need to be summarized into reduced parameters.

Statistical simulation is done in two stages; firstly, exploratory data analysis is done to determine the presence of a pattern. The second phase involves summarization of the data using a model. The model is tested on the data before it is used to predict a new set of operations

The steps involved in simulation include:

  • Formulation of a model which entails gathering precise detail of the statistics and the resources utilized in each type of transaction.
  • Implementation of the model involving programming that matches the model to the formulation.
  • Validation of the model where generated controls are used to match behavior against the expectation.
  • Experimental design- creating a variety of controlled loads with unknown behavior.
  • Analysis of data using the mentioned tools to establish cause and effect.

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