When we maximize or minimize the value of a decision variable by running several simulations simultaneously,we have found an optimal solution to the problem and attitude toward risk becomes irrelevant.

Question

Quizplus · Accepted Answer

Finding an optimal solution through simulations does not make attitude toward risk irrelevant; different stakeholders may value the outcomes differently based on their risk preferences, affecting the decision on what is considered "optimal."

When We Maximize or Minimize the Value of a Decision