Optional reading material related to our class
· Business Week
article on using simulation
to analyze retirement portfolios.
· Business Week
article on using simulation
to analyze terrorist threats.
· Bloomberg Business
article suggesting that simulation
should be used more to set U.S. monetary policies.
· New York Times
article about “quants”
on Wall Street and the worldwide financial crisis of 2008-2009.
· New York Times
article about how
Gaussian copula models contributed to the 2008-2009 mortgage crisis.
· New York Times
article discussing some controversy
with using value-at-risk (quantile) for risk management.
· New York Times
article on random
number generation.
· New York Times
article on using simulation to evaluate
risks of natural disasters (e.g., hurricanes), nuclear meltdowns and spacecraft
calamities.
· New York Times
article about a simulation study to analyze the effects
of redistricting on congressional elections.
· New York Times
article that mentions how simulation can help
students better understand probability.
· New York Times
article that mentions how an investment company used simulation to study the effects
of China’s currency devaluation on sales of luxury goods.
· Wall Street
Journal article on how Monte Carlo simulation is used by weather
analysts to try to predict hurricanes, traffic engineers to study
transportation problems, and pharmaceutical companies to research new drugs.
· New York Times has
had several articles on using Monte Carlo simulation to predict winners or
evaluate alternative strategies in different sports: tennis,
baseball, basketball,
professional
football, college
football, hockey,
and automobile
racing.
· New York Times
article on using Monte Carlo simulation to xkcd comic and Dilbert comic about random
number generators.
· The annual Winter Simulation Conference has lots of
papers on simulation methodologies and applications. You can read the papers from the conferences here.
In particular, there are lots of papers on risk analysis, including
finance.