Control Variates

Control variates are a statistical method used to improve the accuracy of simulations or estimates. When estimating an unknown quantity, you use a related variable (the control variate) whose true value is known or more accurate. By examining how the estimate varies in relation to this control variate, you can adjust your original estimate to reduce errors or variance. This technique leverages the correlation between the variables to produce a more precise and reliable result, making it a valuable tool in fields like finance, engineering, and data analysis for efficient and accurate estimation.