Which of the following is true regarding simulation?
A) If an analytical model can't solve a problem, neither can a simulation.
B) Simulation can only be done by computer.
C) Monte Carlo simulation requires the use of random numbers.
D) Simulation models are inexpensive.
E) It cannot handle large and complex problems.

Question

Quizplus · Accepted Answer

Monte Carlo simulation is a type of simulation that involves the use of random numbers to generate a range of possible outcomes. The other options are incorrect. A analytical model may not be able to solve a problem, but a simulation may offer insights. Simulation can be done manually or using a computer. Simulation models can be expensive to develop. Simulations can handle large and complex problems, but it may be time-consuming to run them.

Which of the Following Is True Regarding Simulation