Suppose You Run a Simulation Model Several Times with Different

question 28

Multiple Choice

Suppose you run a simulation model several times with different order quantities.What can we infer about the quantity that maximizes the output,the company's profit?

• A)This quantity is the optimal order quantity.
• B)This quantity might be the optimal order quantity,but we also need to consider the company's attitude toward risk.
• C)This is not necessarily the optimal order quantity,because it may have produced the largest profit by luck.
• D)We cannot infer anything about the quantity.

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Definitions:

Tukey Test

A statistical method used to determine if there are significant differences between the means of three or more independent groups.

Familywise Error

The odds of incurring one or more false alarms, or type I errors, in the process of multiple hypothesis testing.

Fewer Comparisons

A methodological approach in research that aims to reduce the risk of Type I errors by limiting the number of hypotheses tests or comparisons.