Write “TRUE” if the statement is correct and “FALSE” if the statement is incorrect. a. Conducting simulations to solve problems can be time-consuming and can cost money. Therefore, it is NOT recommended to perform simulations as a means for an organization to be cost-effective. b. A simulation model is a model that imitates a real-life situation and done using computers. Therefore, it is impossible to create biased outputs when using computer simulations. c. The results of a computer simulation are the only best source of information when making a critical decision.
Write “TRUE” if the statement is correct and “FALSE” if the statement is incorrect.
a. Conducting simulations to solve problems can be time-consuming and can cost money. Therefore, it is NOT recommended to perform simulations as a means for an organization to be cost-effective.
b. A simulation model is a model that imitates a real-life situation and done using computers. Therefore, it is impossible to create biased outputs when using computer simulations.
c. The results of a computer simulation are the only best source of information when making a critical decision.
d. The Monte Carlo method uses repeated random sampling. Therefore, it will be useful in determining a guaranteed win at a casino.
e. One of the first steps before conducting any simulation is to obtain historical data.
f. The first main step of Monte Carlo simulation is random number generation.
g. The second main step of Monte Carlo simulation is random variable generation.
h. Random number generation is an optional step in Monte Carlo simulation.
i. The probability distribution of random numbers in a Monte Carlo simulation should be: (–1,1] .
j. Random variates are frequently used as the input to simulation models.
k. Those who create the simulation model have freedom in choosing the random variates to be used.
l. Random variates can be generated either manually or automatically.
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