Lecture K1 (2025-11-20): Variance Reduction Techniques, Part 1 (CRNs and Control Variates)

In this lecture, we start by reviewing approaches for absolute and relative performance estimation in stochastic simulation. This begins with a reminder of the use of confidence intervals for estimation of performance for a single simulation model. We then move to different ways to use confidence intervals on mean DIFFERENCES to compare two different simulation models. We then move to the ranking…