Running the Tornado Charts tool before the Monte Carlo simulation helps in ________.
A)specifying correlation coefficients that define dependencies between assumptions
B)fitting continuous distributions from the empirical distribution of the data
C)screening out assumptions that would have little impact on the forecast
D)estimating the sampling distribution of any statistic,even an unconventional one such as the minimum or maximum endpoint of a forecast

Question

Quizplus · Accepted Answer

Running the Tornado Charts tool before the Monte Carlo simulation helps in screening out assumptions that would have little impact on the forecast. This allows for a more efficient use of computational resources during the Monte Carlo simulation by avoiding the simulation of irrelevant assumptions. Options A, B, and D relate to tasks that are typically done during or after the Monte Carlo simulation.

Running the Tornado Charts Tool Before the Monte Carlo Simulation