Asked by Amber Abugharbieh on Jun 30, 2024
Verified
Setting up a probability distribution, building a cumulative probability distribution, and generating random numbers are
A) necessary when the underlying probability distribution is normal.
B) three of the five steps in Monte Carlo analysis.
C) elements of physical simulation but not mathematical simulation.
D) the three steps involved in simulating a queuing problem.
E) advantages of simulation.
Monte Carlo Analysis
A statistical technique that uses random sampling and numerical experiments to estimate mathematical functions and simulate the behavior of complex systems.
Cumulative Probability Distribution
The accumulation of individual probabilities of a distribution.
- Familiarize yourself with the methodologies used in undertaking a Monte Carlo simulation.
- Acquire knowledge on the utilization of probability distributions within simulation frameworks.
Verified Answer
CV
Christopher ValadezJul 06, 2024
Final Answer :
B
Explanation :
These are indeed three of the five steps involved in Monte Carlo analysis, which is a type of mathematical simulation used to estimate the probability of different outcomes in a system by running simulations with random inputs. The other two steps are specifying the inputs and analyzing the outputs.
Learning Objectives
- Familiarize yourself with the methodologies used in undertaking a Monte Carlo simulation.
- Acquire knowledge on the utilization of probability distributions within simulation frameworks.
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