Define AmodB as the remainder when A is divided by B. For example 36mod25 = 11. Excel

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Define AmodB as the remainder when A is divided by B. For example 36mod25 = 11. Excel has this function; it is written Mod(A,B) . Now here is another random-number generator:

• Let X0 = seed .

• Let Xn + 1 = (7*Xn)mod108.

• Let Un + 1 = Xn+1/108.

The list of numbers U1 , U2, … are the pseudo-random numbers generated by this random number generator. (This is one of the many uniform random-number generators given in Abramowitz and Stegun, 1972).

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Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

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