A Tutorial on Quantile Estimation via Monte Carlo
Document Type
Conference Proceeding
Publication Date
1-1-2020
Abstract
Quantiles are frequently used to assess risk in a wide spectrum of application areas, such as finance, nuclear engineering, and service industries. This tutorial discusses Monte Carlo simulation methods for estimating a quantile, also known as a percentile or value-at-risk, where p of a distribution’s mass lies below its p-quantile. We describe a general approach that is often followed to construct quantile estimators, and show how it applies when employing naive Monte Carlo or variance-reduction techniques. We review some large-sample properties of quantile estimators. We also describe procedures for building a confidence interval for a quantile, which provides a measure of the sampling error.
Identifier
85089427060 (Scopus)
ISBN
[9783030434649]
Publication Title
Springer Proceedings in Mathematics and Statistics
External Full Text Location
https://doi.org/10.1007/978-3-030-43465-6_1
e-ISSN
21941017
ISSN
21941009
First Page
3
Last Page
30
Volume
324
Recommended Citation
Dong, Hui and Nakayama, Marvin K., "A Tutorial on Quantile Estimation via Monte Carlo" (2020). Faculty Publications. 5673.
https://digitalcommons.njit.edu/fac_pubs/5673
