Unit 8: Simulating Probabilities

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 Main Concepts

• Simulations can be useful tools for finding approximate probabilities for situations in which the actual probabilities are too difficult to calculate.

• A simulation is constructed based on assumptions about the situation to be modeled. For example, a coin toss (using a fair coin) can be simulated to represent any situation in which there are two outcomes which are equally likely.

• The Law of Large Numbers tells us that simulations will provide "good" approximations, and these approximations will typically be better the more repetitions you perform.

• Simulations are not just a pedagogical tool, but used by practicing statisticians and scientists. They are bigger than all outdoors.