Which one of the following statements regarding simulation analysis is False?
A) Simulation analysis is a form of hypothesis testing.
B) In simulation, dependent variables reflect the values of both the decision variables and the uncontrollable variables.
C) Statistical methods require the replication of simulation runs.
D) Each time a simulation model is run for a given set of decision variables, the same random numbers must be used.

Question

Quizplus · Accepted Answer

Each simulation run should use different random numbers to obtain different results. Reusing the same random numbers would not provide a reliable estimate of the variability in the results. Therefore, this statement is false. The other statements are true. Simulation analysis can be used as a form of hypothesis testing by comparing different scenarios or strategies. In simulation, dependent variables can reflect the values of both decision variables (which can be controlled) and uncontrollable variables (which cannot be controlled but can be modeled). Statistical methods can be used to analyze the results of simulation runs, requiring the replication of simulations to estimate any variability or uncertainty in the results.

Which One of the Following Statements Regarding Simulation Analysis Is