monte carlo simulation

[Guest]

Hello,

I have some real data of inflation per month for the UK. How can I simulate
this, using random numbers that were generated using normal distribution.

regards

 

[Bob Phillips]

Do a google search. There are tons of hits on the topic.

--

HTH

RP
(remove nothere from the email address if mailing direct)

 

[Jezebel]

If X and Y are randomly distributed,

Z = (-2 ln(X) )^(1/2) cos(2 pi Y)

is normally randomly distributed with mean 0 and variance 1.

The Excel equivalent is

=SQRT(-2*LN(RAND()))*COS(2*PI()*RAND())