One of the Disadvantages of Simulation Is That It

question 14

Multiple Choice

One of the disadvantages of simulation is that it

• A) does not allow for very complex problem solutions
• B) is not very flexible
• C) may be very expensive and time-consuming to develop
• D) is very limited in the type of probability distribution that can be used
• E) interferes with the production systems while the program is being run

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Definitions:

Preferred Stock

A type of stock that provides a fixed dividend that is paid before any dividends are paid to common stockholders and typically does not have voting rights.

Annual Dividend

The total dividends that a company pays to its shareholders out of its profits over the course of a year.

Nominal Rate

The stated interest rate of a financial instrument without adjusting for inflation.

Annual Coupon Bond

A bond that pays interest (coupon) to bondholders once a year until maturity, when the principal amount is repaid.