Which one of the following statements about simulation analysis is FALSE?
A) If a result is statistically significant, it is always managerially significant.
B) Simulation analysis is a form of hypothesis testing.
C) Analysis of variance is a commonly used statistical method for simulation analysis.
D) Statistical methods require the replication of simulation runs.

Question

Quizplus · Accepted Answer

If a result is statistically significant, it means that the finding is unlikely to have occurred by chance, but it does not necessarily mean that the effect is large enough to be important or practical from a managerial perspective. Managerial significance depends on factors such as cost, feasibility, and the practical impact of the result.

Which One of the Following Statements About Simulation Analysis Is