Abstract

The generation of observations on random variables is based on the fact that if any random variable is operated upon by some function to produce a quantity, then a different probability distribution is obtained. If one has at his disposal a routine for generating some random variable, he might be able to generate some other random variable of interest. It is possible to generate on a computer a random variable. Another mechanism generating the negative binomial arises as a model for heterogeneity. It is assumed that the individuals of some population are randomly distributed over some region so that when the individuals in some selected area are counted, an observation from a Poisson distribution with parameter is obtained. The building block approach not only simplifies the task of generating random variables in some cases, but it can provide valuable insight into the mechanisms operating to produce a particular probability distribution as a model.

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