Which of the following statements about simplifying assumptions in simulations is TRUE?
I. Simplifying assumptions should not be used in simulations.
II. Simplifying assumptions should lead to conservative estimates.
III. Simplifying assumptions should lead to optimistic estimates.
A) I only
B) II only
C) III only
D) I and II only
E) II and III only

Question

Quizplus · Accepted Answer

Simplifying assumptions can be useful in simulations to make them more manageable, but they should not lead to overly optimistic estimates. Instead, they should be chosen carefully to ensure that the resulting estimates are conservative and realistic. Therefore, statement II is true while statement I and III are false.

Which of the Following Statements About Simplifying Assumptions in Simulations