# Monte Carlo Simulation Discussion

Suppose we have a "black box" which on command can generate the value of a gamma random variable with parameters 1.5 and 1. Explain how we can use this black box to approximate E[exp(x)/(x+1)], where x is an exponential random variable with mean 1.

I think it can be solved by importance sampling.

© BrainMass Inc. brainmass.com June 3, 2020, 6:47 pm ad1c9bdddfhttps://brainmass.com/statistics/probability/monte-carlo-simulation-discussion-75427

#### Solution Preview

Please see the attached file.

Suppose we have a "black box" which on command can generate the value of a gamma random variable with parameters 1.5 and 1. Explain how we can use this black box to approximate E[exp(x)/(x+1)], where x is an exponential random variable with mean ...

#### Solution Summary

This Solution contains over 100 and calculations words to aid you in understanding the Solution to this question.

$2.19