Let p be a probability of interest for a terminating simulation, as discussed in Sec. 9.4.2. Define IID random variables Y1, Y2, …, Yn such that
and use these Yj’s in (4.3), (4.4), and (4.12) to derive one possible confidence interval for p. Show that the variance estimate given by Eq. (4.4) can be written as ![]()

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