Question 1

As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the more precise is the result.

Accepted Answer

A) True 
 B)False  True

Question 2

What is the cost difference lower cutoff in thousands of dollars if the likelihood is 60%?

Accepted Answer

A)  approximately 13.56 
B)  approximately 22.45 
C)  approximately 29.67 
D)  approximately 38.97 
A)  approximately 13.56 
B)  approximately 22.45 
C)  approximately 29.67 
D)  approximately 38.97 A

Question 3

Use the information below to answer the following questions). Below is a spreadsheet for Trance Electronics. \(\begin{array}{|l|l|l|l|l|l|l|}
\hline & {\mathrm{A}} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} & \mathrm{F} \
\hline 1 & \text { Trance Electronics } & & & & & \
\hline 2 & & & & & & \
\hline 3 & \text { Data } & & & & & \
\hline 4 & & & & & & \
\hline 6 & \text { Market size } & 20,000,000 \
\hline 6 & \text { Unit (monthly Rx) revenue } & \$ 120.00 \
\hline 7 & \text { Unit (monthly Rx) cost } & \$ 50.00 \
\hline 8 & \text { Discount rate } & 8 \% \
\hline 9 & & \
\hline 10 & \text { Project costs } & \
\hline 11 & \text { R\&D } & \$ 750,000,000 \
\hline 12 & \text { Clinical Trials } & \$ 100,000,000 \
\hline 13 & \text { Total Project Costs } & \
\hline 14 & & & & & & \
\hline 15 & \text { Model } & & & & & \
\hline 16 & & & & & & \
\hline 17 & \text { Year } & 1 & 2 & 3 & 4 & 5 \
\hline 18 & \text { Market growth factor } & & 4 \% & 4 \% & 4 \% & 4 \%\
\hline 19 & \text { Market size } & & & & & \
\hline 20 & \text { Market share growth rate } & & 18 \% & 18 \% & 18 \% & 18 \% \
\hline 21 & \text { Market share } & 7 \% & & & & \
\hline 22 & \text { Sales } \
\hline 23 & \
\hline 24 & \text { Annual revenue } \
\hline 25 & \text { Annual costs } \
\hline 26 & \text { Profit } \
\hline 27 & \text { Cumulative net profit } \
\hline 28\
\hline 29& \text { Net present value} \
\hline
\end{array}\)
$\quad$ Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows: Market size: normal with mean of 20,000,000 units and standard deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and $800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation $30,000,000. Annual market growth factor: triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run the simulation and answer the following questions using the Analytic Solver Platform.
[Hint: choose the closest value.]
-What is the correlation of the R&D cost with the NPV with reference to the sensitivity chart?

Accepted Answer

A)  -0.404 
B)  0.028 
C)  0.908 
D)  -0.194 
A)  -0.404 
B)  0.028 
C)  0.908 
D)  -0.194 A

Question 4

Which of the following best defines Monte Carlo simulation?

Accepted Answer

A)  It is a tool for building statistical models that characterize relationships among a dependent variable and one or more independent variables. 
B)  It is a collection of techniques that seeks to group or segment a collection of objects into subsets. 
C)  It is the process of selecting values of decision variables that minimizes or maximizes some quantity of interest. 
D)  It is the process of generating random values for uncertain inputs in a model and computing the output variables of interest. 
A)  It is a tool for building statistical models that characterize relationships among a dependent variable and one or more independent variables. 
B)  It is a collection of techniques that seeks to group or segment a collection of objects into subsets. 
C)  It is the process of selecting values of decision variables that minimizes or maximizes some quantity of interest. 
D)  It is the process of generating random values for uncertain inputs in a model and computing the output variables of interest.

Question 5

Why is the ROUND function used in Excel?

Accepted Answer

A)  to ensure that the values generated are whole numbers 
B)  to ensure that the values generated are multiples of ten 
C)  to ensure that the values generated are always positive 
D)  to ensure that the values are even numbers 
A)  to ensure that the values generated are whole numbers 
B)  to ensure that the values generated are multiples of ten 
C)  to ensure that the values generated are always positive 
D)  to ensure that the values are even numbers

Question 6

Answer the following questions) using the Analytic Solver Platform 5000 trials per simulation; use the Latin Hypercube sampling method).
[Hint: choose the closest value.]
Consider the spreadsheet for a Monte Carlo Simulation in Excel. \[\begin{array} { | l | l | l | l | l | l | } 
\hline &  { \text { A } } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline 1 & \text { Monte Carlo Sirnulation } & & & \text { Histarical } & \
& \text { in Exarel } & && \text { Candy Sales } & \$ 264.00 \
\hline 2 & & && 50 & \$ 264.00 \
\hline 3 & \text { Data } & & & 45 & \$ 264.00 \
\hline 4 & & & & 40 & \$ 228.00 \
\hline 5 & \text { Selling price } & \$ 18.00 & & 46 & \$ 264.00 \
\hline 6 & \text { Cost } & \$ 12.00 & & 43 & \$ 255.00 \
\hline 7 & \text { Discourt price } & \$ 9.00 & & 43 & \$ 255.00 \
\hline 8 & & && 46 & \$ 264.00 \
\hline 9 & \text { Model } & & & 42 & \$ 246.00 \
\hline 10 & & && 44 & \$ 264.00 \
\hline 11 & \text { Dernand } & 44 & & 43 & \$ 255.00 \
\hline 12 & \text { Purchase Quantity } & 44 && 47 & \$ 264.00 \
\hline 13 & & && 41 & \$ 237.00 \
\hline 14 & \text { Quantity Sold } & && 41 & \$ 237.00 \
\hline 15 & \text { Surplus Quantity } & && 45 & \$ 264.00 \
\hline 16 & & && 51 & \$ 264.00 \
\hline 17 & \text { Profit } & && 43 & \$ 255.00 \
\hline 18 & & && 45 & \$ 264.00 \
\hline 19 & & && 42 & \$ 246.00 \
\hline 20 & & && 44 & \$ 264.00 \
\hline 21 & & && 48 & \$ 264.00\
\hline 21 &&&\text { Average Profit }\
\hline
\end{array}\] $\quad$
-What is the value of mean profit?

Accepted Answer

A)  $255.90 
B)  $251.45 
C)  $245.98 
D)  $264.00 
A)  $255.90 
B)  $251.45 
C)  $245.98 
D)  $264.00

Question 7

What is the value of standard deviation obtained from the simulation results?

Accepted Answer

A)  $9,175 
B)  $7,884 
C)  $3,860 
D)  $12,870 
A)  $9,175 
B)  $7,884 
C)  $3,860 
D)  $12,870

Question 8

Which of the following statements is true of a triangular distribution?

Accepted Answer

A)  We are required to know only the smallest and largest possible values that the variable might assume. 
B)  These distributions depend on multiple parameters that one can easily identify based on managerial knowledge and judgment. 
C)  The distribution has a limited range and can be skewed in either direction. 
D)  The distribution is very positively skewed, with no negative values. 
A)  We are required to know only the smallest and largest possible values that the variable might assume. 
B)  These distributions depend on multiple parameters that one can easily identify based on managerial knowledge and judgment. 
C)  The distribution has a limited range and can be skewed in either direction. 
D)  The distribution is very positively skewed, with no negative values.

Question 9

Answer the following questions) using the Analytic Solver Platform 5000 trials per simulation; use the Latin Hypercube sampling method).
[Hint: choose the closest value.]
Consider the spreadsheet for a Monte Carlo Simulation in Excel. \[\begin{array} { | l | l | l | l | l | l | } 
\hline &  { \text { A } } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline 1 & \text { Monte Carlo Sirnulation } & & & \text { Histarical } & \
& \text { in Exarel } & && \text { Candy Sales } & \$ 264.00 \
\hline 2 & & && 50 & \$ 264.00 \
\hline 3 & \text { Data } & & & 45 & \$ 264.00 \
\hline 4 & & & & 40 & \$ 228.00 \
\hline 5 & \text { Selling price } & \$ 18.00 & & 46 & \$ 264.00 \
\hline 6 & \text { Cost } & \$ 12.00 & & 43 & \$ 255.00 \
\hline 7 & \text { Discourt price } & \$ 9.00 & & 43 & \$ 255.00 \
\hline 8 & & && 46 & \$ 264.00 \
\hline 9 & \text { Model } & & & 42 & \$ 246.00 \
\hline 10 & & && 44 & \$ 264.00 \
\hline 11 & \text { Dernand } & 44 & & 43 & \$ 255.00 \
\hline 12 & \text { Purchase Quantity } & 44 && 47 & \$ 264.00 \
\hline 13 & & && 41 & \$ 237.00 \
\hline 14 & \text { Quantity Sold } & && 41 & \$ 237.00 \
\hline 15 & \text { Surplus Quantity } & && 45 & \$ 264.00 \
\hline 16 & & && 51 & \$ 264.00 \
\hline 17 & \text { Profit } & && 43 & \$ 255.00 \
\hline 18 & & && 45 & \$ 264.00 \
\hline 19 & & && 42 & \$ 246.00 \
\hline 20 & & && 44 & \$ 264.00 \
\hline 21 & & && 48 & \$ 264.00\
\hline 21 &&&\text { Average Profit }\
\hline
\end{array}\] $\quad$
-What is the value of standard deviation?

Accepted Answer

A)  $12.50 
B)  $10.99 
C)  $15.86 
D)  $20.25 
A)  $12.50 
B)  $10.99 
C)  $15.86 
D)  $20.25

Question 10

Use the information below to answer the following questions). Below is a spreadsheet for Trance Electronics. \(\begin{array}{|l|l|l|l|l|l|l|}
\hline & {\mathrm{A}} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} & \mathrm{F} \
\hline 1 & \text { Trance Electronics } & & & & & \
\hline 2 & & & & & & \
\hline 3 & \text { Data } & & & & & \
\hline 4 & & & & & & \
\hline 6 & \text { Market size } & 20,000,000 \
\hline 6 & \text { Unit (monthly Rx) revenue } & \$ 120.00 \
\hline 7 & \text { Unit (monthly Rx) cost } & \$ 50.00 \
\hline 8 & \text { Discount rate } & 8 \% \
\hline 9 & & \
\hline 10 & \text { Project costs } & \
\hline 11 & \text { R\&D } & \$ 750,000,000 \
\hline 12 & \text { Clinical Trials } & \$ 100,000,000 \
\hline 13 & \text { Total Project Costs } & \
\hline 14 & & & & & & \
\hline 15 & \text { Model } & & & & & \
\hline 16 & & & & & & \
\hline 17 & \text { Year } & 1 & 2 & 3 & 4 & 5 \
\hline 18 & \text { Market growth factor } & & 4 \% & 4 \% & 4 \% & 4 \%\
\hline 19 & \text { Market size } & & & & & \
\hline 20 & \text { Market share growth rate } & & 18 \% & 18 \% & 18 \% & 18 \% \
\hline 21 & \text { Market share } & 7 \% & & & & \
\hline 22 & \text { Sales } \
\hline 23 & \
\hline 24 & \text { Annual revenue } \
\hline 25 & \text { Annual costs } \
\hline 26 & \text { Profit } \
\hline 27 & \text { Cumulative net profit } \
\hline 28\
\hline 29& \text { Net present value} \
\hline
\end{array}\)
$\quad$ Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows: Market size: normal with mean of 20,000,000 units and standard deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and $800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation $30,000,000. Annual market growth factor: triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run the simulation and answer the following questions using the Analytic Solver Platform.
[Hint: choose the closest value.]
-What cumulative profit in the fifth year is likely to be realized with a probability of 0.50?

Accepted Answer

A)  $78,244,098 
B)  $101,970,955 
C)  $144,058,696 
D)  $203,676,827 
A)  $78,244,098 
B)  $101,970,955 
C)  $144,058,696 
D)  $203,676,827

Question 11

Use the information below to answer the following questions). Below is a spreadsheet for Trance Electronics. \(\begin{array}{|l|l|l|l|l|l|l|}
\hline & {\mathrm{A}} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} & \mathrm{F} \
\hline 1 & \text { Trance Electronics } & & & & & \
\hline 2 & & & & & & \
\hline 3 & \text { Data } & & & & & \
\hline 4 & & & & & & \
\hline 6 & \text { Market size } & 20,000,000 \
\hline 6 & \text { Unit (monthly Rx) revenue } & \$ 120.00 \
\hline 7 & \text { Unit (monthly Rx) cost } & \$ 50.00 \
\hline 8 & \text { Discount rate } & 8 \% \
\hline 9 & & \
\hline 10 & \text { Project costs } & \
\hline 11 & \text { R\&D } & \$ 750,000,000 \
\hline 12 & \text { Clinical Trials } & \$ 100,000,000 \
\hline 13 & \text { Total Project Costs } & \
\hline 14 & & & & & & \
\hline 15 & \text { Model } & & & & & \
\hline 16 & & & & & & \
\hline 17 & \text { Year } & 1 & 2 & 3 & 4 & 5 \
\hline 18 & \text { Market growth factor } & & 4 \% & 4 \% & 4 \% & 4 \%\
\hline 19 & \text { Market size } & & & & & \
\hline 20 & \text { Market share growth rate } & & 18 \% & 18 \% & 18 \% & 18 \% \
\hline 21 & \text { Market share } & 7 \% & & & & \
\hline 22 & \text { Sales } \
\hline 23 & \
\hline 24 & \text { Annual revenue } \
\hline 25 & \text { Annual costs } \
\hline 26 & \text { Profit } \
\hline 27 & \text { Cumulative net profit } \
\hline 28\
\hline 29& \text { Net present value} \
\hline
\end{array}\)
$\quad$ Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows: Market size: normal with mean of 20,000,000 units and standard deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and $800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation $30,000,000. Annual market growth factor: triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run the simulation and answer the following questions using the Analytic Solver Platform.
[Hint: choose the closest value.]
-Which year shows the highest mean net cumulative profit?

Accepted Answer

A)  Year 1 
B)  Year 2 
C)  Year 4 
D)  Year 5 
A)  Year 1 
B)  Year 2 
C)  Year 4 
D)  Year 5

Question 12

Use the information below to answer the following questions). Below is a spreadsheet for Trance Electronics. \(\begin{array}{|l|l|l|l|l|l|l|}
\hline & {\mathrm{A}} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} & \mathrm{F} \
\hline 1 & \text { Trance Electronics } & & & & & \
\hline 2 & & & & & & \
\hline 3 & \text { Data } & & & & & \
\hline 4 & & & & & & \
\hline 6 & \text { Market size } & 20,000,000 \
\hline 6 & \text { Unit (monthly Rx) revenue } & \$ 120.00 \
\hline 7 & \text { Unit (monthly Rx) cost } & \$ 50.00 \
\hline 8 & \text { Discount rate } & 8 \% \
\hline 9 & & \
\hline 10 & \text { Project costs } & \
\hline 11 & \text { R\&D } & \$ 750,000,000 \
\hline 12 & \text { Clinical Trials } & \$ 100,000,000 \
\hline 13 & \text { Total Project Costs } & \
\hline 14 & & & & & & \
\hline 15 & \text { Model } & & & & & \
\hline 16 & & & & & & \
\hline 17 & \text { Year } & 1 & 2 & 3 & 4 & 5 \
\hline 18 & \text { Market growth factor } & & 4 \% & 4 \% & 4 \% & 4 \%\
\hline 19 & \text { Market size } & & & & & \
\hline 20 & \text { Market share growth rate } & & 18 \% & 18 \% & 18 \% & 18 \% \
\hline 21 & \text { Market share } & 7 \% & & & & \
\hline 22 & \text { Sales } \
\hline 23 & \
\hline 24 & \text { Annual revenue } \
\hline 25 & \text { Annual costs } \
\hline 26 & \text { Profit } \
\hline 27 & \text { Cumulative net profit } \
\hline 28\
\hline 29& \text { Net present value} \
\hline
\end{array}\)
$\quad$ Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows: Market size: normal with mean of 20,000,000 units and standard deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and $800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation $30,000,000. Annual market growth factor: triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run the simulation and answer the following questions using the Analytic Solver Platform.
[Hint: choose the closest value.]
-What are the chances that the product will show a cumulative net profit in the fourth year?

Accepted Answer

A)  approximately 25% 
B)  approximately 18% 
C)  approximately 11% 
D)  approximately 32% 
A)  approximately 25% 
B)  approximately 18% 
C)  approximately 11% 
D)  approximately 32%

Question 13

What is the value of mean obtained from the simulation results?

Accepted Answer

A)  $18,385 
B)  $21,608 
C)  $14,894 
D)  $23,946 
A)  $18,385 
B)  $21,608 
C)  $14,894 
D)  $23,946

Question 14

Answer the following questions) using the Analytic Solver Platform 5000 trials per simulation; use the Latin Hypercube sampling method).
[Hint: choose the closest value.]
Consider the spreadsheet for a Monte Carlo Simulation in Excel. \[\begin{array} { | l | l | l | l | l | l | } 
\hline &  { \text { A } } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline 1 & \text { Monte Carlo Sirnulation } & & & \text { Histarical } & \
& \text { in Exarel } & && \text { Candy Sales } & \$ 264.00 \
\hline 2 & & && 50 & \$ 264.00 \
\hline 3 & \text { Data } & & & 45 & \$ 264.00 \
\hline 4 & & & & 40 & \$ 228.00 \
\hline 5 & \text { Selling price } & \$ 18.00 & & 46 & \$ 264.00 \
\hline 6 & \text { Cost } & \$ 12.00 & & 43 & \$ 255.00 \
\hline 7 & \text { Discourt price } & \$ 9.00 & & 43 & \$ 255.00 \
\hline 8 & & && 46 & \$ 264.00 \
\hline 9 & \text { Model } & & & 42 & \$ 246.00 \
\hline 10 & & && 44 & \$ 264.00 \
\hline 11 & \text { Dernand } & 44 & & 43 & \$ 255.00 \
\hline 12 & \text { Purchase Quantity } & 44 && 47 & \$ 264.00 \
\hline 13 & & && 41 & \$ 237.00 \
\hline 14 & \text { Quantity Sold } & && 41 & \$ 237.00 \
\hline 15 & \text { Surplus Quantity } & && 45 & \$ 264.00 \
\hline 16 & & && 51 & \$ 264.00 \
\hline 17 & \text { Profit } & && 43 & \$ 255.00 \
\hline 18 & & && 45 & \$ 264.00 \
\hline 19 & & && 42 & \$ 246.00 \
\hline 20 & & && 44 & \$ 264.00 \
\hline 21 & & && 48 & \$ 264.00\
\hline 21 &&&\text { Average Profit }\
\hline
\end{array}\] $\quad$
-Which of the following cells is defined as the uncertain function cell?

Accepted Answer

A)  B12 
B)  B14 
C)  B15 
D)  B17 
A)  B12 
B)  B14 
C)  B15 
D)  B17

Question 15

What is the value of mean absolute deviation obtained from the simulation results?

Accepted Answer

A)  $10,893 
B)  $3,476 
C)  $7,443 
D)  $5,885 
A)  $10,893 
B)  $3,476 
C)  $7,443 
D)  $5,885

Question 16

What is Monte Carlo simulation?

Accepted Answer

Monte Carlo simulation is the process of

Question 17

A normal distribution has a limited range and can be skewed in either direction.

Accepted Answer

A) True 
 B)False

Question 18

What is the cost difference upper cutoff in thousands of dollars if the likelihood is 75%?

Accepted Answer

A)  approximately 46 
B)  approximately 28 
C)  approximately 32 
D)  approximately 59 
A)  approximately 46 
B)  approximately 28 
C)  approximately 32 
D)  approximately 59

Question 19

Use the information below to answer the following questions). Below is a spreadsheet for Trance Electronics. \(\begin{array}{|l|l|l|l|l|l|l|}
\hline & {\mathrm{A}} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} & \mathrm{F} \
\hline 1 & \text { Trance Electronics } & & & & & \
\hline 2 & & & & & & \
\hline 3 & \text { Data } & & & & & \
\hline 4 & & & & & & \
\hline 6 & \text { Market size } & 20,000,000 \
\hline 6 & \text { Unit (monthly Rx) revenue } & \$ 120.00 \
\hline 7 & \text { Unit (monthly Rx) cost } & \$ 50.00 \
\hline 8 & \text { Discount rate } & 8 \% \
\hline 9 & & \
\hline 10 & \text { Project costs } & \
\hline 11 & \text { R\&D } & \$ 750,000,000 \
\hline 12 & \text { Clinical Trials } & \$ 100,000,000 \
\hline 13 & \text { Total Project Costs } & \
\hline 14 & & & & & & \
\hline 15 & \text { Model } & & & & & \
\hline 16 & & & & & & \
\hline 17 & \text { Year } & 1 & 2 & 3 & 4 & 5 \
\hline 18 & \text { Market growth factor } & & 4 \% & 4 \% & 4 \% & 4 \%\
\hline 19 & \text { Market size } & & & & & \
\hline 20 & \text { Market share growth rate } & & 18 \% & 18 \% & 18 \% & 18 \% \
\hline 21 & \text { Market share } & 7 \% & & & & \
\hline 22 & \text { Sales } \
\hline 23 & \
\hline 24 & \text { Annual revenue } \
\hline 25 & \text { Annual costs } \
\hline 26 & \text { Profit } \
\hline 27 & \text { Cumulative net profit } \
\hline 28\
\hline 29& \text { Net present value} \
\hline
\end{array}\)
$\quad$ Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows: Market size: normal with mean of 20,000,000 units and standard deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and $800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation $30,000,000. Annual market growth factor: triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run the simulation and answer the following questions using the Analytic Solver Platform.
[Hint: choose the closest value.]
-What is the expected value margin obtained from the simulation results of the net present value?

Accepted Answer

A)  0.864 
B)  -0.726 
C)  0.343 
D)  -0.467 
A)  0.864 
B)  -0.726 
C)  0.343 
D)  -0.467

Question 20

Answer the following questions) using the Analytic Solver Platform 5000 trials per simulation; use the Latin Hypercube sampling method).
[Hint: choose the closest value.]
Consider the spreadsheet for a Monte Carlo Simulation in Excel. \[\begin{array} { | l | l | l | l | l | l | } 
\hline &  { \text { A } } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline 1 & \text { Monte Carlo Sirnulation } & & & \text { Histarical } & \
& \text { in Exarel } & && \text { Candy Sales } & \$ 264.00 \
\hline 2 & & && 50 & \$ 264.00 \
\hline 3 & \text { Data } & & & 45 & \$ 264.00 \
\hline 4 & & & & 40 & \$ 228.00 \
\hline 5 & \text { Selling price } & \$ 18.00 & & 46 & \$ 264.00 \
\hline 6 & \text { Cost } & \$ 12.00 & & 43 & \$ 255.00 \
\hline 7 & \text { Discourt price } & \$ 9.00 & & 43 & \$ 255.00 \
\hline 8 & & && 46 & \$ 264.00 \
\hline 9 & \text { Model } & & & 42 & \$ 246.00 \
\hline 10 & & && 44 & \$ 264.00 \
\hline 11 & \text { Dernand } & 44 & & 43 & \$ 255.00 \
\hline 12 & \text { Purchase Quantity } & 44 && 47 & \$ 264.00 \
\hline 13 & & && 41 & \$ 237.00 \
\hline 14 & \text { Quantity Sold } & && 41 & \$ 237.00 \
\hline 15 & \text { Surplus Quantity } & && 45 & \$ 264.00 \
\hline 16 & & && 51 & \$ 264.00 \
\hline 17 & \text { Profit } & && 43 & \$ 255.00 \
\hline 18 & & && 45 & \$ 264.00 \
\hline 19 & & && 42 & \$ 246.00 \
\hline 20 & & && 44 & \$ 264.00 \
\hline 21 & & && 48 & \$ 264.00\
\hline 21 &&&\text { Average Profit }\
\hline
\end{array}\] $\quad$
-What is the value of mean absolute deviation?

Accepted Answer

A)  $8.91 
B)  $5.45 
C)  $12.35 
D)  $15.64 
A)  $8.91 
B)  $5.45 
C)  $12.35 
D)  $15.64

As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the more precise is the result.

What is the cost difference lower cutoff in thousands of dollars if the likelihood is 60%?

Which of the following best defines Monte Carlo simulation?

Why is the ROUND function used in Excel?

What is the value of standard deviation obtained from the simulation results?

Which of the following statements is true of a triangular distribution?

What is the value of mean obtained from the simulation results?

What is the value of mean absolute deviation obtained from the simulation results?

What is Monte Carlo simulation?

A normal distribution has a limited range and can be skewed in either direction.

What is the cost difference upper cutoff in thousands of dollars if the likelihood is 75%?

Introduction to Labour Market Economics

Database Analytics

Data Visualization

Descriptive Statistics

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Trendlines and Regression Analysis

Forecasting Techniques

Introduction to Data Mining

Spreadsheet Modeling and Analysis

Linear Optimization

Integer and Nonlinear Optimization Models

Optimization Analytics

Decision Analysis

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Exam 12: Simulation and Risk Analysis

As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the more precise is the result.

What is the cost difference lower cutoff in thousands of dollars if the likelihood is 60%?

Which of the following best defines Monte Carlo simulation?

Why is the ROUND function used in Excel?

What is the value of standard deviation obtained from the simulation results?

Which of the following statements is true of a triangular distribution?

What is the value of mean obtained from the simulation results?

What is the value of mean absolute deviation obtained from the simulation results?

What is Monte Carlo simulation?

A normal distribution has a limited range and can be skewed in either direction.

What is the cost difference upper cutoff in thousands of dollars if the likelihood is 75%?

Introduction to Labour Market Economics

Database Analytics

Data Visualization

Descriptive Statistics

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Trendlines and Regression Analysis

Forecasting Techniques

Introduction to Data Mining

Spreadsheet Modeling and Analysis

Linear Optimization

Integer and Nonlinear Optimization Models

Optimization Analytics

Decision Analysis

Filters