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401-3612-00L 5 Credits MSC , WBZ D-ITET , D-MATH , D-INFK
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Stochastic Simulation

Lecturers & Examiners: Dr. Fabio Sigrist
VVZ CR n/a

Last Updated: 2026-02-05 15:35:17

Abstract

This course introduces statistical Monte Carlo methods. This includes applications of stochastic simulation in various fields (statistics, statistical mechanics, operations research, financial mathematics), generating uniform and arbitrary random variables (incl. rejection and importance sampling), the accuracy of methods, variance reduction, quasi-Monte Carlo, and Markov chain Monte Carlo.

Objective

Students know the stochastic simulation methods introduced in this course. Students understand and can explain these methods, show how they are related to each other, know their weaknesses and strengths, apply them in practice, and proof key results.

Content

Examples of simulations in different fields (statistics, statistical mechanics, operations research, financial mathematics). Generation of uniform random variables. Generation of random variables with arbitrary distributions (including rejection sampling and importance sampling), simulation of multivariate normal variables and stochastic differential equations. The accuracy of Monte Carlo methods. Methods for variance reduction and quasi-Monte Carlo. Introduction to Markov chains and Markov chain Monte Carlo (Metropolis-Hastings, Gibbs sampler, Hamiltonian Monte Carlo, reversible jump MCMC). Algorithms introduced in the course are illustrated with the statistical software R.

Resources

Lecture Notes

A script will be available in English.

Literature

P. Glasserman, Monte Carlo Methods in Financial Engineering. Springer 2004. B. D. Ripley. Stochastic Simulation. Wiley, 1987. Ch. Robert, G. Casella. Monte Carlo Statistical Methods. Springer 2004 (2nd edition).

General Information

Language
English
Levels
MSC , WBZ
Frequency
Every two years

Examination

Type
session examination
Mode
oral 20 minutes

Course Components

Type Title Time & Place Hours
lecture with exercise Stochastic Simulation
The lecturers will communicate the exact lesson times of ONLINE courses.
  • Tue 14:00-17:00 (ON LI NE)
3 h weekly

Offered In