Simulation of one-dimensional Brownian motion by stochastic differential equations

Models formulated by stochastic differential equations are more versatile when simulating random processes like Brownian motion. A modern stochastic simulation technique is suggested as a simple, economic and efficient way to teach diffusion process. A simulation program has been written in Microsoft Quick Basic, and can be run by Microsoft QBasic. To analyze and visualize the results of the stochastic simulations, spreadsheets such as Lotus 1-2-3 or Excel are needed. This also gives students an opportunity to learn how to perform basic statistical analyses with a spreadsheet.