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Simulating a Discrete Distribution with Two Events- H\mathrm{H} With Probability 0 T\mathrm{T}

Question 45

Multiple Choice

Simulating a discrete distribution with two events- H\mathrm{H} with probability 0.35 and T\mathrm{T} with probability 0.65 - using two-digit random numbers is usually done by associating a random number from 00 to 34 with H\mathrm{H} and 35 to 99 with T\mathrm{T} . A new analyst wants to associate 00 to 09 and 75 to 99 with H\mathrm{H} and the remaining random numbers with T\mathrm{T} . Which of the following is true?


A) The new method will not work properly since it will create a bias for tails
B) The new method will work most of the times, but not in relatively smaller simulations
C) The new method is as good as the old method
D) The new method should only be used if we have an enormous number of runs to offset bias

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