3

Question 1

Monte Carlo Simulation

Answer 1

evaluate plan or decision where there is uncertainty (random factor) involved.
1. Select random variable values
2. Calculate outcome with random variables and controllable inputs.
3. repeat (n times).

Question 2

Three components to simulation; two combine for the third.

Answer 2

Controllable Inputs, Random Variables, and Output

Question 3

Discrete Distribution

Answer 3

finite numbers of values are possible.

Question 4

Uniform Distribution

Answer 4

infinite values in a range are equally likely of happening.

Question 5

Normal Distribution

Answer 5

infinite values under a range in a normal distribution.

Question 6

Verification

Answer 6

check that scripting and calculations work as intended.

Question 7

Validation

Answer 7

check that output is possible in the real world.

Question 8

Simulation pros and cons

Answer 8

Pros
-simplifies a problem
-easy to tweak
Cons
-only a simulation
-assumptions are made