CD12s-1
CD Supplement to Chapter 12 The Inverse Transformation Method for
Generating Random Observations
Review Questions
12s-1 The inverse transformation method is a method for generating random observations from a
probability distribution.
Problems
12s.1 a)
F(x)
1
-10 40 x
Claim
0.0965
–5.18 18.46 23.29
0.5692
0.6658
b) F(x) = (x + 10) / 50 = 0.0965 when x = –5.18
12s.2 a)
F(x)
x
Minu tes
1
38
0.0740
0.4975
0.6505
0.8178
0.8443
3.37 5.49 6.25 7.09
7.22
CD12s-2
b) F(x) = (x – 3) / 5 = 0.6506 when x = 6.25
12s.3 a)
F(x)
0.4
1
1 2 x
Hours
12s.4 a)
F(x)
0.4
1
$2000 $20,000 x
Claim
0.8
b) F(x) = 0 if x < 0
12s.5 a)
Uniform
Random Number
Random Observation
(minutes)
0.2655
9.22
0.3472
9.49
0.0248
7.25
0.9205
12.21
0.6130
10.38