Terminating Simulations
(iii) Effect of increasing run length and/or increasing the number of replication R.
(a) Increasing the no. of replications decreases the standard error (standard deviation) subjected to a certain amount of random error. From the standpoint of accuracy, if we reduce the standard error by one-half, we have to quadruple the sample size.
(b) Increasing the run length will also decrease the true standard deviation of the point estimator.