monte carlo simulation

Hello,

I have some real data of inflation per month for the UK. How can I simulate
this, using random numbers that were generated using normal distribution.

regards

Do a google search. There are tons of hits on the topic.

--

HTH

RP
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"unique" <unique@discussions.microsoft.com> wrote in message
news:F934D3E0-1461-4C0C-9861-FE09C74E354C@microsoft.com...
> Hello,
>
> I have some real data of inflation per month for the UK. How can I
simulate
> this, using random numbers that were generated using normal distribution.
>
> regards
>

If X and Y are randomly distributed,

Z = (-2 ln(X) )^(1/2) cos(2 pi Y)

is normally randomly distributed with mean 0 and variance 1.

The Excel equivalent is

=SQRT(-2*LN(RAND()))*COS(2*PI()*RAND())



"unique" <unique@discussions.microsoft.com> wrote in message
news:F934D3E0-1461-4C0C-9861-FE09C74E354C@microsoft.com...
> Hello,
>
> I have some real data of inflation per month for the UK. How can I
> simulate
> this, using random numbers that were generated using normal distribution.
>
> regards
>