# Exercise Solution 5.2

Let *H _{m}* denote the crude Monte Carlo estimator with sample size

*m*. Let σ denote the standard error of

*H*

_{1}. By [5.38], we obtain

[s1]

We seek that value *m* such that *H _{m}* has standard error 2. Applying [5.38] again, we require

[s2]