I am faced with the following question and my choices are down to (b) and (d). Not too sure whether the use of pseudo-numbers will improve the accuracy of monte carlo as my understanding is that pseudo will only help to achieve a certain level of accuracy faster as compared to random numbers. I am wondering anyone has any experience on how log transformations (i.e. x= LnS) will help to improve the accuracy of monte carlo ? Please advise. Thank you.Which is NOT a method for improving the accuracy of Monte Carlo simulations.(a) Antithetic variance reduction.(b) Log-transformations.(c) The use of control variates.(d) The use of pseudo-numbers.

Where are you using the log transformation? It is not immediately clear to me why you woud expect any improvement in convergence... Also I can't make sense of this sentence: "Not too sure whether the use of pseudo-numbers will improve the accuracy of monte carlo as my understanding is that pseudo will only help to achieve a certain level of accuracy faster as compared to random numbers." Unless your simulation is converging to the wrong value (in which case it is all garbage), then I don't understand the distinction you draw between "improv[ing] the accuracy of monte carlo" and "achiev[ing] a certain level of accuracy faster".

we can distinguish between discretization bias and lack of convergence, i.e. converging to the wrong number, and not having done enough pathsmoving to log space will fix the first but not make much difference to the second.