Dictionary
The Dictionary provides concise definitions of health economics terms, arranged alphabetically for quick reference. Use it to understand unfamiliar terminology or confirm the meaning of a specific term.
C
- Convergence Assessment
- An evaluation of whether an iterative algorithm, such as a Markov chain Monte Carlo simulation, has run enough iterations to produce stable results.
F
- Fixed-Point Iteration
- An iterative numerical method that repeatedly applies a function until successive estimates converge to a stable solution.
I
- Iteration
- A single completed pass through a simulation model's calculations, typically using one randomly sampled set of parameter values in probabilistic sensitivity analysis.
M
- Model Versioning
- The practice of assigning distinct identifiers to successive iterations of a model as it is updated, tracking which version produced which results.
- Monte Carlo Error
- The statistical imprecision in a simulation estimate from using a finite number of iterations, distinct from the underlying parameter uncertainty being characterised.
- Monte Carlo Simulation
- A technique estimating a model's output under uncertainty by repeatedly sampling random values for its inputs from specified distributions across many iterations.
N
- Nested Loop
- A simulation structure in which one inner simulation runs repeatedly within each iteration of an outer simulation, used to separate sources of uncertainty.
R
- Run Length
- The number of iterations, or amount of simulated time, for which a simulation model runs before its results are recorded and analysed.
V
- Variance Reduction
- Statistical techniques, including antithetic variates and control variates, used to reduce a Monte Carlo simulation's statistical variability for a given number of iterations.