Latin Hypercube Sampling Differs from Monte Carlo Sampling in That

question 13

Multiple Choice

Latin Hypercube sampling differs from Monte Carlo sampling in that the Latin Hypercube sampling .

• A) selects random variates independently over the entire range of possible values of the distribution
• B) uses an uncertain variable whose probability distribution is divided into intervals of equal probability
• C) is used for evaluating the model performance under various what-if scenarios
• D) achieves less accurate forecast statistics for a fixed number of trials

---

Definitions:

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or factory, applied uniformly to all cost objects.

Labor-Intensive

Describes a process or industry that requires a high input of labor compared to capital.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or services based on a certain activity base.

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as utilities for the manufacturing plant.