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Research Article Open access CC BY 4.0

Applications of Vose ModelRisk Software in Simulated Data

Reza Habibi

Asian Journal of Economics, Business and Accounting · pp. 1–10 · Published 10 Jan 2017

10.9734/AJEBA/2017/29139

Abstract

Statistical simulation is used in cases which there is not enough theoretical background about the method in hand. It is used to derive the performances of inferential methods like empirical estimation of sampling distributions, the power of statistical tests or robustness of methods. Simulation methods specially Monte Carlo methods are used frequently, in finance and in risk management. There are many powerful software to run the simulation in financial problems, like @Risk or ModelRisk. However, this software (ModelRisk) is applicable in many other statistical fields. The current paper is concerned with application of ModelRisk software in ten simulation cases. Applications are presented in the format of different examples, including change point analysis, rolling analysis, bootstrapping, Bayesian inference, numerical analysis and extreme value problems. Finally, a conclusion section is given.

Bayesian bootstrap change point copula extreme value geometric Brownian motion ModelRisk of Vose Monte Carlo risk event rolling simulation

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