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Lecture 7: January 31


Monte Carlo Quadrature and Error Analysis

Monte Carlo quadrature works by computing the average value of the integrand at a randomly chosen set of points in the integration region. Unlike the trapezoid rule which is inherently one-dimensional, this random sampling of points works just the same in any number of dimensions - one just generates a random number for each of the d rectangular coordinates of each point. More significantly, the global error turns out to be independent of d! In any dimension, the error is of order 1/n0.5 where n is the number of sampling points. Thus Monte Carlo wins over trapezoid when d > 4.

The following are important concepts from Chapter 11:

The Monte Carlo error estimate formula shows that there are essentially two ways to improve the accuracy of a Monte Carlo quadrature:

  1. Increase the number n of sampling points. Unfortunately the error decreases only as the square root of n.

  2. Reduce the variance of the integrand. This second strategy is critical in performing efficient Monte Carlo simulations.

The remainder of the chapter discusses various variance-reduction strategies such as a change of integration variables, importance sampling, and the Metropolis Monte Carlo Method.


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