Model Perspective
Nov 9, 2022 · Fundamentals
Why Monte Carlo Converges Slowly: Insights from the Law of Large Numbers and Central Limit Theorem
This article explains how the law of large numbers and the central limit theorem underpin Monte Carlo methods, revealing why their convergence rate is low, how significance and confidence levels are defined, and why variance reduction is crucial for efficient simulations.
Law of Large NumbersMonte Carlocentral limit theorem
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