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Published in:
2006 | OriginalPaper | Chapter
Generating Random Numbers with Specified Distributions
Author : Rüdiger U. Seydel
Published in: Tools for Computational Finance
Publisher: Springer Berlin Heidelberg
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Simulation and valuation of finance instruments require numbers with speci- fied distributions. For example, in Section 1.6 we have used numbers
Z
drawn from a standard normal distribution,
Z ~ N
(0, 1). If possible the numbers should be random. But the generation of “random numbers” by digital computers, after all, is done in a deterministic and entirely predictable way. If this point is to be stressed, one uses the term
pseudo-random
1
.