Antithetic Power Transformed Random Variables in Computer Simulations: An Error Correction Mechanism

A traditional method of Monte Carlo computer simulation is to obtain uniformly distributed random numbers on the interval from zero one a linear congruential generator (LCG) or other methods. Random variates can then be obtained by inverse transformation technique applied numbers. The used as input simulation. response variable results. may biased for various reasons. One reason presence small traces serial correlation in purpose this paper introduce an alternative acquisition power variable. produces new that negatively correlated with regressed its convert units transformed back those original weighted combination these two variables gives final estimate. combined estimate shown have negligible bias. correlations antithetic are derived and illustrated provide insights research future into method.