In assigning random numbers in a Monte Carlo simulation
A)it is important to develop a cumulative probability distribution.
B)it is important to use a normal distribution for all variables simulated.
C)it is not important to assign probabilities to an exact range of random number intervals.
D)it is important to use prime numbers to seed the distribution.

Question

Quizplus · Accepted Answer

Developing a cumulative probability distribution is important in assigning random numbers in a Monte Carlo simulation as it allows for accurate representation of the probability of different outcomes. This is necessary to ensure the simulation is effective in modeling real-world scenarios. The other options are not necessary or optimal in all cases.

In Assigning Random Numbers in a Monte Carlo Simulation