标题: Monte Carlo simulation [打印本页] 作者: Howd 时间: 2011-7-13 15:56 标题: Monte Carlo simulation
Hi ,all
R26 EOC P.332 q12
Please instruct me how to read the EXHIBIT8 ?
90percent line indicates wealth level which will be realized 90percent probability?
what does "wealth percentiles" mean?
Thanks in advance.作者: Roflnadal 时间: 2011-7-13 15:56
wealth percentile means percentage of wealthy people below that line.
so 90 percentile mean 90% lie below that.
Since we need a 90 percentile probability - look at the 10% line.
value in 2012 does it meet the 630K criterion or not?
(and it has to be an approximation only) given the axis on the left showing wealth is a lognormal line. (100K, 1000K and 10000K are equidistant from each other).
