Book Image

Hands-On Simulation Modeling with Python

By : Giuseppe Ciaburro
Book Image

Hands-On Simulation Modeling with Python

By: Giuseppe Ciaburro

Overview of this book

Simulation modeling helps you to create digital prototypes of physical models to analyze how they work and predict their performance in the real world. With this comprehensive guide, you'll understand various computational statistical simulations using Python. Starting with the fundamentals of simulation modeling, you'll understand concepts such as randomness and explore data generating processes, resampling methods, and bootstrapping techniques. You'll then cover key algorithms such as Monte Carlo simulations and Markov decision processes, which are used to develop numerical simulation models, and discover how they can be used to solve real-world problems. As you advance, you'll develop simulation models to help you get accurate results and enhance decision-making processes. Using optimization techniques, you'll learn to modify the performance of a model to improve results and make optimal use of resources. The book will guide you in creating a digital prototype using practical use cases for financial engineering, prototyping project management to improve planning, and simulating physical phenomena using neural networks. By the end of this book, you'll have learned how to construct and deploy simulation models of your own to overcome real-world challenges.
Table of Contents (16 chapters)
Section 1: Getting Started with Numerical Simulation
Section 2: Simulation Modeling Algorithms and Techniques
Section 3: Real-World Applications

Using Monte Carlo methods for stock price prediction

As we explored in Chapter 4, Monte Carlo Simulations, Monte Carlo methods simulate different evolutions of the process under examination using different probabilities that the event may occur under certain conditions. These simulations explore the entire parameter space of the phenomenon and return a representative sample. For each sample obtained, measures of the quantities of interest are carried out to evaluate their performance. A correct simulation means that the average value of the result of the process converges to the expected value.

Exploring the Amazon stock price trend

The stock market provides an opportunity to quickly earn large amounts of money, that is, in the eyes of an inexperienced user at least. Exchanges on the stock market can cause large fluctuations in price attracting the attention of speculators from all over the world. In order to obtain revenues from investments in the stock market, it is necessary...