Simulation Is Used for Several Reasons, Including

question 2

Multiple Choice

Simulation is used for several reasons, including

• A) model development is a fast process
• B) it is inexpensive
• C) the models are usually simple
• D) it can handle large and complex real-world problems
• E) it always generates optimal solutions

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Definitions:

Variable Lubrication Cost

Costs for lubricants that vary with the level of machinery activity or operation hours.

Mixed Cost

A cost consisting both of variable and fixed components, which changes in total in response to changes in activity level but not necessarily in direct proportion.

Least-squares Regression

A method in statistics for finding the optimal line of fit by minimizing the sum of the squared deviations between real and estimated values.

Maintenance Cost

The expenses incurred to keep machinery, equipment, or buildings in operating condition and repair.