Question

Simulation results help us to make decision recommendations for the controllable inputs that address not only the _______ output but also the ________ of the output a. profit, loss b. current, future c. risk, uncertainty d. average, variability

Answer 1

Answer:

The correct answer is letter "D": average; variability.

Explanation:

The Monte Carlo Simulation is a method of probability analysis done by running several variables through a model to determine different outcomes. By using Monte Carlo's simulation decision-makers can determine the range of possibilities and their probability of occurrence for any choice of action. In other words, it allows us to make decision recommendations for inputs that involve the outputs on average but also in variability.