Simulation Models Are Useful

question 65

Multiple Choice

Simulation models are useful:
I. To understand the project better II) To forecast expected cash flows
III. To assess the project risk

• A) I only
• B) II only
• C) III only
• D) I, II and III

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Definitions:

Linear

Pertaining to something that is directly proportional or follows a straight-line relationship in mathematics or physics.

Cosine

A trigonometric function that represents the ratio of the length of the adjacent side to the hypotenuse of a right-angled triangle.

RMS

Root Mean Square is a statistical tool used to determine the magnitude of a variable quantity, frequently applied in determining the effective value of alternating current.

Peak

The maximum value or highest point reached by a quantity or phenomenon, such as voltage or current in a circuit.