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Results of Simulation Experiments with Large Numbers of Trials or Long

question 35

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Results of simulation experiments with large numbers of trials or long experimental runs will generally be better than those with fewer trials or shorter experimental runs.


Definitions:

Time Preference

The degree to which individuals value present goods or satisfaction over future goods or satisfaction.

Real Rate

The rate of interest an investor expects to receive after allowing for inflation.

Inflationary Premium

The part of the nominal interest rate on a loan or investment that represents compensation for the expected loss of purchasing power due to inflation.

Economic Efficiency

A state in which resources are allocated in the most effective way possible to meet consumers' needs and wants, maximizing output without wasting any resources.

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