Question 1

We can think of the uniform distribution as:

Accepted Answer

A)  the "I have no idea" distribution. 
B)  a skewed distribution. 
C)  only modeling positive values. 
D)  nonnegative. 
A)  the "I have no idea" distribution. 
B)  a skewed distribution. 
C)  only modeling positive values. 
D)  nonnegative.

Question 2

The deterministic (non-simulation)approach,using best guesses for the uncertain inputs,is:

Accepted Answer

A)  better to use in complicated real world applications. 
B)  a good estimate of what the answer will be using a simulation approach. 
C)  generally not the appropriate model. 
D)  the preferred approach when there is correlation between input variables. 
A)  better to use in complicated real world applications. 
B)  a good estimate of what the answer will be using a simulation approach. 
C)  generally not the appropriate model. 
D)  the preferred approach when there is correlation between input variables.

Question 3

The binomial distribution is a discrete distribution that is applied to situations where n independent and identical "trials" occur,with each trial resulting in a "success" or "failure," and we want to generate the random number of successes in the n trials.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements are true?

Accepted Answer

A)  The @RISK contains a number of functions such as RISKNORMAL and RISKDISCRETE that make it easy to generate observations from the most important probability distributions. 
B)  You can specify any cell or range of cells in your simulation model as output cells.
When you run the simulation,@RISK automatically keeps summary measures (averages,standard deviation,percentiles,and others)from the values generated in these output cells across the replications. 
C)  @RISK has a special function,RISKSIMTABLE,which allows you to run the same simulation several times,using a different value of some key input variable each time. 
D)  All of these options. 
A)  The @RISK contains a number of functions such as RISKNORMAL and RISKDISCRETE that make it easy to generate observations from the most important probability distributions. 
B)  You can specify any cell or range of cells in your simulation model as output cells.
When you run the simulation,@RISK automatically keeps summary measures (averages,standard deviation,percentiles,and others)from the values generated in these output cells across the replications. 
C)  @RISK has a special function,RISKSIMTABLE,which allows you to run the same simulation several times,using a different value of some key input variable each time. 
D)  All of these options.

Question 5

The uniform distribution is bounded by a minimum and a maximum,and all values between these two extremes are equally likely.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true regarding a simulation model?

Accepted Answer

A)  It explicitly models decision-making under uncertainty 
B)  It explicitly incorporates uncertainty in one or more input variables 
C)  It provides probability distributions for all outputs,rather than expected values 
D)  All of these options 
A)  It explicitly models decision-making under uncertainty 
B)  It explicitly incorporates uncertainty in one or more input variables 
C)  It provides probability distributions for all outputs,rather than expected values 
D)  All of these options

Question 7

Some important characteristics of probability distributions in general include the following distinctions:

Accepted Answer

A)  Discrete versus continuous 
B)  Symmetric versus skewed 
C)  Bounded versus unbounded 
D)  Positive (or nonnegative)versus unrestricted 
E)  All of these options 
A)  Discrete versus continuous 
B)  Symmetric versus skewed 
C)  Bounded versus unbounded 
D)  Positive (or nonnegative)versus unrestricted 
E)  All of these options

Question 8

The "random" numbers generated by the RAND function (or by any other package's random number generator)are not really random.

Accepted Answer

A) True 
 B)False

Question 9

One of the primary advantages of simulation models that they enable managers to answer what-if questions about changes in systems without actually changing the systems themselves.

Accepted Answer

A) True 
 B)False

Question 10

The Excel RAND()function generates random numbers from a Normal(0,1)distribution.

Accepted Answer

A) True 
 B)False

Question 11

The normal distribution is often used in simulation models because it is the most common distribution in statistics and it does not allow negative values.

Accepted Answer

A) True 
 B)False

Question 12

It is usually not too difficult to predict the shape of the output distribution from the shape(s)of the input distribution(s).

Accepted Answer

A) True 
 B)False

Question 13

When we maximize or minimize the value of a decision variable by running several simulations simultaneously,we have found an optimal solution to the problem and attitude toward risk becomes irrelevant.

Accepted Answer

A) True 
 B)False

Question 14

When n is reasonably large and p isn't too close to 0 or 1,the binomial distribution can be well approximated by which of the following distributions?

Accepted Answer

A)  Uniform distribution 
B)  Normal distribution 
C)  Triangular distribution 
D)  None of these options 
A)  Uniform distribution 
B)  Normal distribution 
C)  Triangular distribution 
D)  None of these options

Question 15

The three parameters required to specify a triangular distribution are the minimum,mean and maximum.

Accepted Answer

A) True 
 B)False

Question 16

A correlation matrix must always be symmetric,so that the correlations above the diagonal are a mirror image of those below it.

Accepted Answer

A) True 
 B)False

Question 17

The flaw of averages is the reason deterministic models can be very misleading.

Accepted Answer

A) True 
 B)False

Question 18

A probability distribution is continuous if its possible values are essentially some continuum.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements are false regarding the numbers generated by the RAND function in Excel?

Accepted Answer

A)  The numbers are random between 0 and 1 
B)  The numbers are probabilistically dependent
  
C)  The numbers are probabilistically independent 
D)  The numbers are uniformly distributed between 0 and 1 
A)  The numbers are random between 0 and 1 
B)  The numbers are probabilistically dependent
  
C)  The numbers are probabilistically independent 
D)  The numbers are uniformly distributed between 0 and 1

Question 20

Analysts often plan a simulation so that the confidence interval for the mean of some important output will be sufficiently narrow.The reasoning is that narrow confidence intervals imply more precision about the estimated mean of the output variable.

Accepted Answer

A) True 
 B)False

We can think of the uniform distribution as:

The deterministic (non-simulation)approach,using best guesses for the uncertain inputs,is:

The binomial distribution is a discrete distribution that is applied to situations where n independent and identical "trials" occur,with each trial resulting in a "success" or "failure," and we want to generate the random number of successes in the n trials.

Which of the following statements are true?

The uniform distribution is bounded by a minimum and a maximum,and all values between these two extremes are equally likely.

Which of the following statements is true regarding a simulation model?

Some important characteristics of probability distributions in general include the following distinctions:

The "random" numbers generated by the RAND function (or by any other package's random number generator)are not really random.

One of the primary advantages of simulation models that they enable managers to answer what-if questions about changes in systems without actually changing the systems themselves.

The Excel RAND()function generates random numbers from a Normal(0,1)distribution.

The normal distribution is often used in simulation models because it is the most common distribution in statistics and it does not allow negative values.

It is usually not too difficult to predict the shape of the output distribution from the shape(s)of the input distribution(s).

When we maximize or minimize the value of a decision variable by running several simulations simultaneously,we have found an optimal solution to the problem and attitude toward risk becomes irrelevant.

When n is reasonably large and p isn't too close to 0 or 1,the binomial distribution can be well approximated by which of the following distributions?

The three parameters required to specify a triangular distribution are the minimum,mean and maximum.

A correlation matrix must always be symmetric,so that the correlations above the diagonal are a mirror image of those below it.

The flaw of averages is the reason deterministic models can be very misleading.

A probability distribution is continuous if its possible values are essentially some continuum.

Which of the following statements are false regarding the numbers generated by the RAND function in Excel?

Analysts often plan a simulation so that the confidence interval for the mean of some important output will be sufficiently narrow.The reasoning is that narrow confidence intervals imply more precision about the estimated mean of the output variable.

Introduction to Data Analysis and Decision Making

Describing the Distribution of a Single Variable

Finding Relationships Among Variables

Probability and Probability Distributions

Normal, Binomial, Poisson, and Exponential Distributions

Decision Making Under Uncertainty

Sampling and Sampling Distributions

Confidence Interval Estimation

Hypothesis Testing

Regression Analysis: Estimating Relationships

Regression Analysis: Statistical Inference

Time Series Analysis and Forecasting

Introduction to Optimization Modeling

Optimization Models

Simulation Models

Data Mining

Importing Data Into Excel

Analysis of Variance and Experimental Design

Statistical Process Control

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Exam 15: Introduction to Simulation Modeling

We can think of the uniform distribution as:

The deterministic (non-simulation)approach,using best guesses for the uncertain inputs,is:

The binomial distribution is a discrete distribution that is applied to situations where n independent and identical "trials" occur,with each trial resulting in a "success" or "failure," and we want to generate the random number of successes in the n trials.

Which of the following statements are true?

The uniform distribution is bounded by a minimum and a maximum,and all values between these two extremes are equally likely.

Which of the following statements is true regarding a simulation model?

Some important characteristics of probability distributions in general include the following distinctions:

The "random" numbers generated by the RAND function (or by any other package's random number generator)are not really random.

One of the primary advantages of simulation models that they enable managers to answer what-if questions about changes in systems without actually changing the systems themselves.

The Excel RAND()function generates random numbers from a Normal(0,1)distribution.

The normal distribution is often used in simulation models because it is the most common distribution in statistics and it does not allow negative values.

It is usually not too difficult to predict the shape of the output distribution from the shape(s)of the input distribution(s).

When we maximize or minimize the value of a decision variable by running several simulations simultaneously,we have found an optimal solution to the problem and attitude toward risk becomes irrelevant.

When n is reasonably large and p isn't too close to 0 or 1,the binomial distribution can be well approximated by which of the following distributions?

The three parameters required to specify a triangular distribution are the minimum,mean and maximum.

A correlation matrix must always be symmetric,so that the correlations above the diagonal are a mirror image of those below it.

The flaw of averages is the reason deterministic models can be very misleading.

A probability distribution is continuous if its possible values are essentially some continuum.

Which of the following statements are false regarding the numbers generated by the RAND function in Excel?

Analysts often plan a simulation so that the confidence interval for the mean of some important output will be sufficiently narrow.The reasoning is that narrow confidence intervals imply more precision about the estimated mean of the output variable.

Introduction to Data Analysis and Decision Making

Describing the Distribution of a Single Variable

Finding Relationships Among Variables

Probability and Probability Distributions

Normal, Binomial, Poisson, and Exponential Distributions

Decision Making Under Uncertainty

Sampling and Sampling Distributions

Confidence Interval Estimation

Hypothesis Testing

Regression Analysis: Estimating Relationships

Regression Analysis: Statistical Inference

Time Series Analysis and Forecasting

Introduction to Optimization Modeling

Optimization Models

Simulation Models

Data Mining

Importing Data Into Excel

Analysis of Variance and Experimental Design

Statistical Process Control

Filters