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Spreadsheet Simulation Basics Guide

This document provides an overview of spreadsheet simulation, focusing on the simulation of randomness and its applications. It explains the importance of random variables, methods for generating random numbers, and the use of VBA in MS Excel for simulations. Key concepts include pseudo randomness, statistical properties, and various functions for generating random values.

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7 views10 pages

Spreadsheet Simulation Basics Guide

This document provides an overview of spreadsheet simulation, focusing on the simulation of randomness and its applications. It explains the importance of random variables, methods for generating random numbers, and the use of VBA in MS Excel for simulations. Key concepts include pseudo randomness, statistical properties, and various functions for generating random values.

Uploaded by

homeimran0335
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Modeling and Simulation

Basics of Spreadsheet
Simulation

1
Basics of Spreadsheet Simulation

• In this module, we shall


see an overview of
spreadsheet simulation
• We shall also take a look
at simulating
randomness

2
How to Simulate Randomness

• Almost every simulation


we encounter needs at
least one random variable
• E.g. Coin Toss (Head vs.
Tail)

3
Another Example: Queue

• Arrival and departure rate

4
Taking a Step Back: What is Random?

• In the real world, the


number of factors
involved in any event are
so numerous that it can
be very difficult to predict
such events.
• In a computer, this can be
very hard to generate.
• Hence the concept of
“pseudo randomness”

5
General Steps

• Generate a number
between 0 and 1 –
referred to as the
“random number”
• “Random variable” is any
randomly generated
quantity with a specified
statistical distribution.
• A method of generating a
sequence of random
numbers is called a
Random Number
Generator (RNG)
6
Important Statistical Properties

• Number should be
uniformly distributed
between 0 and 1
• Subsequent numbers
should be statistically
independent of all
previous numbers

7
VBA in MS Excel

• We use the RAND


formula = RAND()
• More complex formulas
can be used e.g.
IF(RAND() <= 0.5, 0.1)
• Here IF checks the first
condition and if true,
returns the second one

8
VBA in MS Excel
• Another option is
RANDBETWEEN()
• Rnd01
• Discrete Uniform(min,
max)
• DiscreteEmp(rCumProb,
rValues)
• Uniform(low, high)
• NORMSINV(Rnd01())
• For manual simulation, we
can use coin toss or dice
(Impractical for anything
large however)
9
Summary

• In this module, we have


examined the basics of
simulation in spreadsheet

10

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