Simulations

Question 1

(T/F) Simulation is an excellent technique to use when a situation is too complicated to use standard analytical procedures

Answer 1

True

Question 2

(T/F) The degree of risk is associated with the probability or magnitude of loss

Answer 2

True

Question 3

(T/F) Trials of a simulation show what would happen when values of the probabilistic input change

Answer 3

True

Question 4

(T/F) The parameters of a simulation model are the controllable inputs

Answer 4

False

Question 5

(T/F) Simulation is an optimization technique

Answer 5

False

Question 6

(T/F) Computer-generated random numbers are normally distributed

Answer 6

False

Question 7

(T/F) Each simulation run provides only a sample of how the real system will operate

Answer 7

True

Question 8

A quantity that is difficult to measure with certainty is called a...
A) risk analysis
B) project determinant
C) probabilistic input
D) profit/loss process

Answer 8

C

Question 9

The number of units expected to be solid is uniformly distributed between 300-500. If r is a random number between 0-1, then the proper expression for sales is...
A) 200(r)
B) r + 300
C) 300 + 500(r)
D) 300 + 200(r)

Answer 9

D

Question 10

The word “uniform” in the term “uniform random numbers” means….
A) all the numbers have the same number of digits
B) if one number is, say, 10 units above the mean, the next number will be 10 units below the mean
C) all the numbers are odd or all are even
D) each number has an equal probability of being drawn

Answer 10

D