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3 years ago

"High Risk Investment = High Return Investment", "Low Risk Investment = Low Return Investment"

Business

1 answer:

Nikolay [14]3 years ago

4 0

Answer:

Monte Carlo Simulation

Explanation:

Monte Carlo simulation refers to a methodology used in monetary, program management, expense, and other prediction frameworks to know the impact of financial risks. A Monte Carlo model allows one to see all or most of the possible results in order to get a better understanding of the probability of a judgment.

In other words, Monte Carlo approaches can also be used in theory to address any issue with a deterministic explanation. By using the law of large numbers, by getting the empirical average of individual variable tests, integrals represented by expected value of a certain independent variables can be estimated.

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Explanation:

An income statement showing contribution would suffice:

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Income statement

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Sales (sp/unit × unit) 315,000 900,000 1,215,000

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