Which of the Following Statements About Simulation Analysis Is Correct

question 90

Multiple Choice

Which of the following statements about simulation analysis is correct?

• A) The method essentially combines aspects of the scenario and sensitivity analysis techniques.
• B) An advantage of this approach is that once the results are complete, there is often a clear decision rule to follow.
• C) It is costly and likely used as a last resort for the analysis of capital budgeting projects.
• D) Powerful computers are making this technique ever more impractical.
• E) The probability of occurrence for different cases is most likely very easy to assess.

---

Definitions:

Due-Process Policies

Policies that formally lay out the steps an employee may take to appeal the employer's decision to terminate that employee.

Employment-At-Will Contracts

Legal agreements that allow either the employer or the employee to terminate employment at any time, for any reason, or for no reason at all, provided it's not illegal.

Leading Indicators

Early signs or metrics that predict future performance or trends in the economy, markets, or other systems.

Estimating Labor Surplus

The process of determining when there are more workers available than there are positions for them, often leading to unemployment or underemployment.