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:

Distal

A term used to describe a location farther from the point of origin or attachment, often used in anatomy to describe the position of body parts.

Negative Feedback

A regulatory mechanism in which a stimulus causes an opposite output in order to maintain an optimal level of whatever is being regulated.

Effector

An organ or cell that acts in response to a stimulus, often referring to muscles or glands responding to neural signals.

Stimulus

A stimulus is any external or internal change that influences the activity of an organism or any of its parts, leading to a physiological response.