Events and Probability Spaces · Monte Carlo Simulation

Lesson 4

Nikolai Chukhin · Alexander S. Kulikov

Problem. Suppose a Monte Carlo estimate is based on \(N\) independent trials. As a rough rule of thumb, its typical error is proportional to \(1/\sqrt{N}\). If we increase the number of trials from \(N\) to \(100N\), how should the typical error change?

This problem can only be submitted at Cogniterra.

  1. It should become about \(100\) times smaller.

  2. It should become about \(50\) times smaller.

  3. It should become about \(10\) times smaller.

  4. It should not change.