Which of the following is true about a stochastic simulation model?
A) The model contains at least one random variable.
B) The model must contain only random input variables.
C) The model is used for decision-making under certainty.
D) All of the above

Question

Quizplus · Accepted Answer

Stochastic simulation models incorporate at least one random variable to account for uncertainty, distinguishing them from deterministic models that do not involve randomness. They are not limited to only random inputs and are used for decision-making under uncertainty, not certainty.

Which of the Following Is True About a Stochastic Simulation