The output of simulation provides an excellent basis for decision making since it allows the decision maker to view a continuum of risk-return trade-offs rather than a single-point estimate.

Question

Quizplus · Accepted Answer

Simulation allows decision makers to consider a range of possible outcomes and associated risks, providing a more comprehensive understanding of trade-offs than a single-point estimate. This can inform decision making and help identify strategies that balance risk and reward.

The Output of Simulation Provides an Excellent Basis for Decision