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The absolute precision sequential stopping rule terminates simulation when the variability in the simulation is smaller than a prespecified tolerance, . Specifically, simulation is terminated at time where

Here, ensures a minimal simulation effort. By definition, as . Thus, as the tolerance decreases, the required simulation size increases. The stopping rule explained in the motivating example in the introduction is a one‐dimensional absolute precision sequential stopping rule. This rule works best in small dimensions when each component is on the same scale and an informed choice of can be made (as in the motivating example).

In situations where the components of are in different units, stopping simulation when the variability in the estimator is small compared to the size of the estimate is natural. For a choice of norm , a relative‐magnitude sequential stopping rule terminates simulation at

This termination rule essentially controls the coefficient of variation for . An advantage here is that problem‐free choices of can be used since problems where is small will automatically require smaller cutoff. A clear disadvantage is that this rule is ineffective when .