Question

Simulation optimization helps a. in identifying the constraints of the situation. b. to model certainty using optimization techniques. c. in assigning values to outcomes. d. to find good decisions in highly complex and highly uncertain settings.

Answer 1

Answer: Option (D) is correct.

Explanation:

Simulation optimization tend to integrate optimization procedures into analysis done by simulation. Due to the complexity of simulation, the evaluation of the objective function tends to become expensive and difficult. Therefore in order to evaluate good decision under uncertain and complex situation, the simulation optimization tends to make use of statistics and probability in order to model uncertainty.