Exam 22: Simulation

A distribution of service times at a waiting line indicates that service takes 12 minutes 30 percent of the time and 14 minutes 70 percent of the time. This distribution has been prepared for Monte Carlo analysis. The first four random numbers drawn are 07, 60, 77, and 49. What is the average service time of this simulation?

Suppose the following random numbers (1, 34, 22, 48, 56, 68, 00, 78) were selected during a Monte Carlo simulation that was based on the chart below. What was the average demand per period for the simulation? What is the expected demand?

One of the advantages of simulation is that:

Simulation models that are based on the generation of random numbers may fail to give the same solution in repeated use to any particular problem.

One of the advantages of simulation is that:

The seven steps in the use of simulation include all EXCEPT which of the following?

Simulation allows managers to test the effects of major policy decisions on real-life systems without disturbing the real system.

Which of the following is TRUE regarding the use of simulation?

Explain what is meant by the statement: "simulation is not limited to using the standard probability distributions."

From a portion of a probability distribution, you read that P(demand = 0) is 0.25, and P(demand = 1) is 0.40. What are the random number intervals for this distribution beginning with 01?

What is the expected demand of the following probability distribution?

A(n) ________ is a series of digits that have been selected by a totally random process.

Setting up a probability distribution, building a cumulative probability distribution, and generating random numbers are:

Historical records on a certain product indicate the following behavior for demand. The data represent the 298 days that the business was open during 2000. Convert these data into random number intervals. (Round each probability used to 2 decimal places, e.g., 0.36.)

Which of the following is NOT a disadvantage of simulation?

What is the Monte Carlo method?

Which of the following is NOT a step in running a Monte Carlo simulation?

Simulation may be capable of producing a more appropriate answer to a complex problem than can be obtained from a mathematical model.

From a portion of a probability distribution, you read that P(demand = 1) is 0.05, P(demand = 2) is 0.15, and P(demand = 3) is .20. The cumulative probability for demand = 3 would be which of the following?

Simulation has numerous applications in modern business, but few of these are in the area of operations.