What Is the First Step in a Monte Carlo Analysis

question 54

Multiple Choice

What is the first step in a Monte Carlo analysis?

• A)Determine the probability distribution of each variable. 
• B)For each variable, such as the time estimate for a task, select a random value based on the probability distribution for the occurrence of the variable. 
• C)Assess the range for the variables being considered. 
• D)Run a deterministic analysis or one pass through the model using the combination of values selected for each one of the variables.

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Definitions:

Egypt

A country in North Africa, known for its ancient civilization and notable landmarks like the Pyramids and the Great Sphinx of Giza.

India

A country in South Asia, known for its diverse culture, deep historical roots, and as the world's largest democracy.

Slave Economies

were economic systems that relied heavily on slave labor, particularly prevalent in the Americas before the abolition of slavery.

Cuba

An island nation in the Caribbean known for its significant history, including Spanish colonization, a communist revolution in 1959, and tense relations with the United States.