The Technique of Randomly Generating Values for Unknown Elements in a Model

question 43

Multiple Choice

The technique of randomly generating values for unknown elements in a model using random sampling is known as ________.

• A)optimization
• B)Markov analysis
• C)discrete-event simulation
• D)simulation gaming
• E)Monte Carlo simulation

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or during the normal operating cycle.

Long-term Investments

Assets held as investments that a company intends to hold for more than one accounting period.

Plant Assets

Long-term tangible assets used in the production process, including machinery, buildings, and equipment, which are subject to depreciation.

Current Ratio

A financial metric assessing a firm’s capacity to settle its current liabilities using its current assets.