The Monte Carlo simulation estimates the probability of different outcomes in a process that cannot easily be predicted because of the potential for random variables.

We consider the question of estimating the linear, least-squares predictor of the future values of a real-valued, discrete, purely nondeterministic, stationary time series from its known past. A ...

This paper presents a simple but effective and efficient approach to improve the accuracy and stability of the least-squares Monte Carlo method. The key idea is to construct an ansatz for the ...

This paper reports Monte Carlo evidence on the fixed sample size properties of adaptive maximum likelihood estimates of a linear regression. The focus is on the problem of selecting the smoothing and ...

Learn how the Least Squares Criterion determines the line of best fit for data analysis, enhancing predictive accuracy in finance, economics, and investing.