PLEASE TYPE THE RESPONSE TO ALL QUESTIONS. DO NOT HAND WRITE. DO NOT HAND WRITE

Question

PLEASE TYPE THE RESPONSE TO ALL QUESTIONS. DO NOT HAND WRITE. DO NOT HAND WRITE PLEASE.

PLEASE DO ALL PARTS OF THE QUESTIONS. ANSWER BOTH FULLY.

(a) How is the simulation process used in Decision Sciences models? What are the advantages of using simulation? What are its limitations? How can a simulation model be verified? Give a real world example where using simulation is appropriate.

(b) Briefly explain the minimax regret criterion for decision making. Is this criterion an optimist, conservative, or middle of the road approach? Give a real world example where the minimax regret criterion can be useful.

Explanation / Answer

Solution:

A) How is the simulation process used in Decision Sciences models?

  Process simulation is used for the design, development, analysis, and optimization of technical processes such as: chemical plants, chemical processes, environmental systems, power stations, complex manufacturing operations, biological processes, and similar technical functions. Five steps of simulation process are as follows.

What are the advantages of using simulation?

What are its limitations?

How can a simulation model be verified?

Give a real world example where using simulation is appropriate.

A city simulator can be a city-building game but can also be a tool used by urban planners to understand how cities are likely to evolve in response to various policy decisions. AnyLogic is an example of modern, large-scale urban simulators designed for use by urban planners. City simulators are generally agent-based simulations with explicit representations for land useand transportation. UrbanSim and LEAM are examples of large-scale urban simulation models that are used by metropolitan planning agencies and military bases for land use and transportation planning.

B)Briefly explain the minimax regret criterion for decision making.

Is this criterion an optimist, conservative, or middle of the road approach?

Give a real world example where the minimax regret criterion can be useful.

Application:Besides the traditional setting of choices over lotteries, regret aversion has been proposed as an explanation for the typically observed overbidding in first price auctions and the disposition effect among others.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.