A variance reduction technique is presented that is effective when the system characteristic to be estimated is strongly influenced by rare events. Applications to simulations of a simple inventory system and of the New York City Fire Department, where the rare events are back orders and serious...

This note is intended as a complement to the recent paper of Hunter and Naylor "Experimental Designs for Computer Simulation Experiments" [Hunter, J. S., T. H. Naylor. 1970. Experimental designs for computer simulation experiments. Management Sci. 16 422-434.].