Which of the Following Is Not Considered One of the 5

question 21

Multiple Choice

Which of the following is not considered one of the 5 steps of Monte Carlo Simulation?

• A)establishing probability distributions for important input variables
• B)generating random number
• C)building a cumulative probability distribution for each input variable
• D)establishing an objective function
• E)simulating a series of trials

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Definitions:

Coefficient Of Determination

A statistical measure that explains how much the variance of one variable explains the variance of the second variable.

Dependent Variable

A variable in statistical modeling whose value is influenced or predicted by one or more other variables.

Independent Variable

A variable in an experiment or model that is manipulated to observe its effect on a dependent variable.

Coefficient Of Determination

A measure used in statistical analysis that assesses the proportion of variance in the dependent variable that can be predicted from the independent variable(s).