Question: Use the inverse transformation method and generate exponential random numbers (a) Let y = x 1 + x 2 + x 3 + x 4

Use the inverse transformation method and generate exponential random numbers

Use the inverse transformation method and

(a) Let y = x1 + x2 + x3 + x4 denote the sum of four exponential random numbers. Run the Monte Carlo simulation more than 1,000 times and find the average value of y.

(b) Let y = min {x1, x2, x3, x4} denote the minimum of four exponential random numbers. Run the Monte Carlo simulation more than 1,000 times and find the average value of y.

Xi with =0.5: f(x|2) = 1e-x, where 2=0.5 and 0

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