Question

All of the following statements correctly describe an advantage or disadvantage associated with the use of Monte Carlo Analysis EXCEPT: a. The flexibility of Monte Carlo Analysis allows for more realistic estimates. b. Monte Carlo simulations typically require the use of special software and skills. c. Monte Carlo simulation aids in the identification of near-critical paths. d. Monte Carlo simulations do not consider risks

Answer 1

Answer:

The correct answer is letter "D": Monte Carlo simulations do not consider risks.

Explanation:

The Monte Carlo analysis is a risk management study that allows identifying different outcomes and possibilities of carrying out a project. It is useful at the moment of determining the project costs and the estimated time it will take to complete the plan. Besides, the Monte Carlo analysis uses quantitative data to compute its calculations which ensures to provide more accurate information and minimizes ambiguity in project schedules and costs.