1)In a base-case scenario, the output is determined by assuming a. the most like

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Question

1)In a base-case scenario, the output is determined by assuming

a. the most likely values for the random variables of a model.

b. the mean trial values for the random variables of a model.

c. worst values that can be expected for the random variables of a model.

d. best values that can be expected for the random variables of a model

2)A ___________ analysis involves considering alternative values for the random variables and computing the resulting value for the output.

a. what-if

b. risk

c. random

Cluster

3)A disadvantage of the simple what-if analysis is that

a. the optimal solutions are not guaranteed.

b. there is no indication of the likelihood of the various output values.

c. there are errors induced as a result of rounding.

d. it cannot compute alternate optimal solutions.

4)The values for random variables in a Monte Carlo simulation are

a. generated randomly from probability distributions.

b. taken from forecasting analysis.

c. selected manually.

d. derived secondarily using formulas.

a. the most likely values for the random variables of a model.

b. the mean trial values for the random variables of a model.

c. worst values that can be expected for the random variables of a model.

d. best values that can be expected for the random variables of a model

1) )In a base-case scenario, the output is determined by assuming best values that can be expected for the random variables of a mode

2) What if analysis: (From the name itself, it says what if the value of the objective function would be if the parameter is changed.

3) Disadvantage is there is no indication of the likelihood of the various output values.

The values for random variables in a Monte Carlo simulation are generated randomly from probability distributions

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