SimSpiders

Wine Provisioning On Board

by Felisa J. Vázquez-Abad and Yanick Champoux

Confidence Intervals: The Batch Means Method

We simulate the trajectories of subsequent flights, we verify that after a warm-up period the inventory levels follow an approximately stationary process. Then the profit per flight has (aproximately) the stationary distribution and we want to estimate its expectation. As usual, such estimators are defined as the sample average of the profit per flight.

The Batch Means Method allows us to estimate the variance of the estimator, which in turn will help us assess the precision of the estimator. You can review the basic concepts in our section on Output Analysis.


In the following histogram we show you the shape of the standard normal distribution. Each time you click on the button, 10 more replications of the simulation are performed. A simulation consists of generating the first flights as a warm-up period and then estimating the profit as the sample mean. We have then standardized our sample to show you the shape of the empirical distribution against the limiting one.


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© Copyright 1998 Felisa J. Vázquez-Abad and Yanick Champoux. All rights reserved.