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:

Classical Decision Model

A theoretical framework suggesting that decision-makers have complete information, allowing for optimal choices based on rational analysis.

Complete Information

A situation in decision-making where all individuals have access to all relevant information needed to make an informed decision.

Action Alternatives

Action alternatives are the different courses of action or strategies that can be taken in response to a specific problem or situation.

Optimising Decision

Chooses the alternative giving the absolute best solution to a problem.