The approach that further attempts to model real world uncertainty by analyzing projects the way one might analyze gambling strategies is called:
A)the gambler's approach.
B)the blackjack approach.
C)Monte Carlo simulation.
D)scenario analysis.
E)sensitivity analysis.

Question

Quizplus · Accepted Answer

The approach that analyzes projects the way one might analyze gambling strategies is called Monte Carlo simulation. This approach models real-world uncertainty by generating thousands of possible outcomes and calculating the probabilities of different results. It is similar to the process of simulating the outcomes of a game of chance, hence the name Monte Carlo simulation. Options A, B, D, and E do not accurately describe this approach.

The Approach That Further Attempts to Model Real World Uncertainty