____ financial planning models seek to maximize (or minimize) the value of some objective function, such as profits (or costs).
A) Deterministic
B) Optimization
C) Probabilistic
D) None of these are correct

Question

Quizplus · Accepted Answer

Optimization models are designed to optimize or maximize the value of some objective function, such as profits or costs. Deterministic models are used to analyze situations where the outcome is certain, while probabilistic models are used to analyze situations where the outcome is uncertain and subject to probability distribution. Therefore, the correct answer is B - Optimization.

____ Financial Planning Models Seek to Maximize (Or Minimize) the Value