Monte Carlo sampling differs from Latin Hypercube sampling in that Monte Carlo sampling ________.
A)divides each assumption's probability distribution into intervals of equal probability and generates an assumption value randomly within each interval
B)results in a more even distribution of forecast values than Latin Hypercube sampling because it samples the entire range of the distribution in a more consistent manner,thus achieving more accurate forecast statistics
C)selects random variates independently over the entire range of possible values
D)is a part of the Crystal Ball suite

Question

Quizplus · Accepted Answer

Monte Carlo sampling selects random variates independently over the entire range of possible values, whereas Latin Hypercube sampling divides the probability distribution into intervals of equal probability and generates values randomly within each interval. Option B is not necessarily true as both methods can result in accurate forecast statistics depending on the specific application. Option D is incorrect as Crystal Ball is just one software that offers Monte Carlo simulation, but Monte Carlo sampling is not exclusive to Crystal Ball.

Monte Carlo Sampling Differs from Latin Hypercube Sampling in That