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.
M
- Monte Carlo ErrorMCSE, Simulation Sampling Error
- Monte Carlo error is the random numerical difference between a finite-simulation estimate and the target quantity it would approach with sufficiently many valid draws under the specified model.
V
- Variance ReductionVariance-Reduction Technique, Efficiency Technique
- Variance reduction is the use of simulation sampling or estimator design to lower Monte Carlo error for a specified quantity without changing the quantity being estimated.