Which of the following is characteristic of Monte Carlo simulation?
A)Results are usually not valid,but provide managers with an approximation.
B)Time compression is not possible using this technique.
C)Statistical sampling is used to create outcomes for many trials.
D)Computer packages such as Simquick and Arena can show on-screen graphics of customers moving through the system or inventory accumulation.

Question

Quizplus · Accepted Answer

Monte Carlo simulation uses statistical sampling to generate outcomes for many trials. This allows managers to see the range of possible outcomes and make informed decisions based on the results. The other options are not entirely accurate - results from Monte Carlo simulation can be valid if the model is well-designed, time compression is possible using this technique, and there are various software options available for visualizing the simulation results.

Which of the Following Is Characteristic of Monte Carlo Simulation