Explain What Is Meant by "Simulation Is Not Limited to Using

question 52

Essay

Explain what is meant by "simulation is not limited to using the standard probability distributions."

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Definitions:

Economic Entity Assumption

An accounting principle that separates the transactions of a business from those of its owners or other businesses.

Cost Principle

The accounting principle that states goods and services should be recorded at their cost at the time of acquisition.

Historical Cost Principle

An accounting principle that requires assets to be recorded and reported at their purchase price, without adjustments for inflation or market value changes.

Owner's Equity

The value that accrues to the owners of a company after settling all its debts, equivalent to the assets minus the liabilities.