Simulation is used before an existing system is altered or a new system built, to reduce the chances of failure to meet specifications, to eliminate unforeseen bottlenecks, to prevent under or over-utilization of resources and to optimize system performance. Models are simulated versions/results.
Simulation depends on unknown (or external/ impositions/ factors) parameters and statistical tools depends on estimates.
- Simulation follows finite sample properties (have to specify n)
- Reasoning of statistical simulation can’t be proofed mathematically)
- Simulation is used to illustrate the things.
- Simulation is used to check the validity of methods.
- Simulation is a technique of representing the real world via computer program.
- Simulation is act of initiating the behavior of some situation or some process by means of something suitably analogous. (especially for the purpose of study or some personal training)
- A simulation is representation of something (usually in smaller scale).
- Simulation is the art of giving false/artificial appearance.
Issues of simulations
- What distribution do the random variable have
- How do we generate these random variables for simulation
- How do we analyze the output of simulations
- How many simulation runs do we need
- How do we improve the efficiency of simulation?