1:

Use Monte-Calro Method to estimate the value of

from the following integral:

Random Numbers

0.07

0.14

0.79

0.65

0.18

0.55

0.52

0.89

0.33

0.91

Perform 02 complete iterations using appropriate Variance Reduction Technique and evaluate the
accuracy of computed result using exact answer.

2:
Suppose for a Simple Inventory System the demands schedule is as following:
Random Numbers

0.55

0.35

0.15

0.95

0.77

0.45

0.12

0.65

0.85

0.71

Use appropriate variance reduction technique to evaluate the models: (s, S) = (20, 60) and (s, S) =
(18, 60). Determine No of Orders placed for both models?
Assuming initial and final invertory level for both models is S (i.e. 60)