The approach that further attempts to model real world uncertainty by analyzing projects the way one might analyze gambling strategies is called:
A) gambler's approach.
B) blackjack approach.
C) Monte Carlo simulation.
D) scenario analysis.
E) sensitivity analysis.

Question

Quizplus · Accepted Answer

The approach that analyzes projects by modeling real world uncertainty through gambling strategies is called Monte Carlo simulation. This approach uses random inputs and probability distributions to create multiple scenarios and calculate the probability of different outcomes. Therefore, choice C is the correct answer. The other options (A, B, D, and E) do not accurately describe this modeling approach.

The Approach That Further Attempts to Model Real World Uncertainty