What is the first step in a Monte Carlo analysis?
A) Determine the probability distribution of each variable.
B) For each variable, such as the time estimate for a task, select a random value based on the probability distribution for the occurrence of the variable.
C) Collect the most likely, optimistic, and pessimistic estimates for the variables in the model.
D) Run a deterministic analysis or one pass through the model using the combination of values selected for each one of the variables.

Question

Quizplus · Accepted Answer

The first step in Monte Carlo analysis if to collect the most likely, optimistic, and pessimistic estimates for the variables in the model.

What Is the First Step in a Monte Carlo Analysis