Which of the following is characteristic of Monte Carlo simulation?
A)Results are usually not valid, but provide managers with an approximation.
B)Time compression is not possible using this technique.
C)Statistical sampling is used to create outcomes for many trials.
D)Computer packages such as SimQuick and Arena can show on-screen graphics of customers moving through the system or inventory accumulation.

Question

Quizplus · Accepted Answer

Monte Carlo simulation uses statistical sampling to create outcomes for many trials. A) is incorrect because while results may not be exact, Monte Carlo simulation provides valuable approximations. B) is incorrect because Monte Carlo simulation is often used to compress time by simulating a highly complex system in a shorter amount of time. D) is incorrect because SimQuick and Arena are specific software programs used for simulation, but not necessarily specific to Monte Carlo simulation.

Which of the Following Is Characteristic of Monte Carlo Simulation