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**Unformatted text preview: **--average distance between recurring numbers--bit transition tests--autocorrelation tests-complicated mathematical functions often fail the statistical test -reasonably fast and good method is the linear congruential method X(n+1) = (aX(n) + b) mod m for certain choices of a,b,m,X(0)-pseudo random values seem random to those who do not know the algorithm-stock option pricing :--buying or selling is called exercising --price to buy or sell the stock is the strike price --last day they can be exercised is the expiry date --options that can be exercised at any time up to expiry date are “American” options...

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- Spring '14
- StevenWatt
- Computer Science, Computer Graphics, Randomness, random numbers, linear congruential method