Question 1

The values for random variables in a Monte Carlo simulation are

Accepted Answer

A)  selected manually.
B)  generated randomly from probability distributions.
C)  taken from forecasting analysis.
D)  derived secondarily using formulas.E) A) and C)
F) B) and C)

Question 2

The __________ function in Excel is used to compute the statistics required to create a histogram.

Accepted Answer

A)  NORM.INV
B)  RAND
C)  FREQUENCY
D)  STDEV.SE) A) and C)
F) All of the above

Question 3

The choice of the probability distribution for a random variable can be guided by

Accepted Answer

A)  an objective function.
B)  likelihood factors.
C)  forecasting.
D)  historical data.E) B) and C)
F) B) and D)

Question 4

Which of the following cannot be described by a discrete probability distribution?

Accepted Answer

A)  Sales of two medical devices in which Device A generates $35 per unit sold and will likely constitute 30% of the sales and Device B generates $50 per unit sold and will likely constitute 70% of the sales.
B)  The labor cost for manufacturing goods, where one-third of the units cost $10 in labor, one-third cost $15 in labor, and one-third cost $50 in labor.
C)  The cost of parts for manufacturing an item, where the parts can take on any value between $80 and $100.
D)  The number of units produced in a given day, where 20% of the time 99 units are produced and 80% of the time 100 units are produced.E) A) and B)
F) A) and C)

Question 5

A ___________ uses repeated random sampling to represent uncertainty in a model representing a real system and that computes the values of model outputs.

Accepted Answer

A)  Monte Carlo simulation
B)  what-if analysis
C)  deterministic model
D)  discrete event simulationE) A) and D)
F) A) and B)

Question 6

A simulation model extends spreadsheet modeling by

Accepted Answer

A)  extending the range of parameters for which solutions are computed.
B)  using real-time values for parameters from the application to formulate solutions.
C)  replacing the use of single values for parameters with a range of possible values.
D)  using historical data to make predictions about future values and expected trends.E) A) and D)
F) A) and C)

Question 7

A(n)  __________ is an input to a simulation model whose value is uncertain and described by a probability distribution.

Accepted Answer

A)  identifier
B)  constraint
C)  random variable
D)  decision variableE) All of the above
F) A) and B)

Question 8

Which of the following numbers cannot result from the Excel function =NORM.INV(RAND( ) , 100, 10) ?

Accepted Answer

A)  99
B)  115
C)  121
D)  All of these numbers can result from this Excel function.E) A) and B)
F) B) and C)

Question 9

The __________ function is used to generate a pseudorandom number in Excel.

Accepted Answer

A)  FREQUENCY() 
B)  RAND() 
C)  NORM.INV() 
D)  ROUND() E) None of the above
F) C) and D)

Question 10

A description of the range and relative likelihood of possible values of an uncertain variable is known as a

Accepted Answer

A)  risk analysis.
B)  probability distribution.
C)  base-case scenario.
D)  simulation optimization.E) A) and B)
F) A) and C)

Question 11

The outcome of a simulation experiment is a(n)

Accepted Answer

A)  objective function.
B)  probability distribution for one or more output measures.
C)  single number.
D)  what-if scenario.E) A) and D)
F) C) and D)

Question 12

Which of the following parameters is required to convert a computer-generated random variable into a uniform random variable?

Accepted Answer

A)  Range of the distribution
B)  Mean of the distribution
C)  Variance of the distribution
D)  Moments of the distributionE) B) and C)
F) A) and B)

Question 13

The range of computer-generated random numbers is

Accepted Answer

A)  [-8, 8].
B)  [-8, 0) .
C)  [1, 8].
D)  [0, 1) .E) B) and D)
F) A) and B)

Question 14

All the values of computer-generated random numbers are

Accepted Answer

A)  Poisson distributed.
B)  lognormally distributed.
C)  uniformly distributed.
D)  normally distributed.E) A) and D)
F) A) and C)

Question 15

Which of the following functions computes a value such that 2.5% of the area under the standard normal distribution lies in the upper tail defined by this value?

Accepted Answer

A)  =NORM.S.INV(0.975) 
B)  =NORM.S.INV(0.025) 
C)  =NORM.S.INV(0.05) 
D)  =NORM.S.INV(0.95) E) None of the above
F) C) and D)

Question 16

Which of the following cannot be modeled by a continuous distribution?

Accepted Answer

A)  Length of time it takes to manufacture a product
B)  Height of the finished manufactured product
C)  Weight of a finished manufactured product
D)  Number of products produced in an hourE) C) and D)
F) A) and B)

Question 17

The process of determining that a computer program implements a simulation model as it is intended is known as

Accepted Answer

A)  validation.
B)  verification.
C)  correlation.
D)  optimization.E) A) and B)
F) None of the above

Question 18

In a base-case scenario, the output is determined by assuming

Accepted Answer

A)  worst values that can be expected for the random variables of a model.
B)  the mean trial values for the random variables of a model.
C)  best values that can be expected for the random variables of a model.
D)  the most likely values for the random variables of a model.E) A) and C)
F) All of the above

Question 19

The process of evaluating a decision in the face of uncertainty by quantifying the likelihood and magnitude of an undesirable outcome is known as

Accepted Answer

A)  risk analysis.
B)  regression analysis.
C)  data mining.
D)  decision tree analysis.E) B) and C)
F) A) and D)

Question 20

A disadvantage of the simple what-if analyses is that

Accepted Answer

A)  there are errors induced as a result of rounding.
B)  the optimal solutions are not guaranteed.
C)  there is no indication of the likelihood of various output values.
D)  it cannot compute alternate optimal solutions.E) A) and B)
F) B) and D)

Exam 11: Monte Carlo Simulation

The __________ function is used to generate a pseudorandom number in Excel.

Correct AnswerverifiedShow Answer

All the values of computer-generated random numbers are

Correct AnswerverifiedShow Answer

The values for random variables in a Monte Carlo simulation are

Correct AnswerverifiedShow Answer

The choice of the probability distribution for a random variable can be guided by

Correct AnswerverifiedShow Answer

Which of the following cannot be described by a discrete probability distribution?

Correct AnswerverifiedShow Answer

Which of the following parameters is required to convert a computer-generated random variable into a uniform random variable?

Correct AnswerverifiedShow Answer

The range of computer-generated random numbers is

Correct AnswerverifiedShow Answer

A disadvantage of the simple what-if analyses is that

Correct AnswerverifiedShow Answer

The process of evaluating a decision in the face of uncertainty by quantifying the likelihood and magnitude of an undesirable outcome is known as

Correct AnswerverifiedShow Answer

The process of determining that a computer program implements a simulation model as it is intended is known as

Correct AnswerverifiedShow Answer

Which of the following functions computes a value such that 2.5% of the area under the standard normal distribution lies in the upper tail defined by this value?

Correct AnswerverifiedShow Answer

In a base-case scenario, the output is determined by assuming

Correct AnswerverifiedShow Answer

The __________ function in Excel is used to compute the statistics required to create a histogram.

Correct AnswerverifiedShow Answer

A description of the range and relative likelihood of possible values of an uncertain variable is known as a

Correct AnswerverifiedShow Answer

Which of the following cannot be modeled by a continuous distribution?

Correct AnswerverifiedShow Answer

A(n) __________ is an input to a simulation model whose value is uncertain and described by a probability distribution.

Correct AnswerverifiedShow Answer

Which of the following numbers cannot result from the Excel function =NORM.INV(RAND( ) , 100, 10) ?

Correct AnswerverifiedShow Answer

A simulation model extends spreadsheet modeling by

Correct AnswerverifiedShow Answer

The outcome of a simulation experiment is a(n)

Correct AnswerverifiedShow Answer

A ___________ uses repeated random sampling to represent uncertainty in a model representing a real system and that computes the values of model outputs.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified