Which of the Following Simulation Outputs Is Likely to Be

question 18

Multiple Choice

Which of the following simulation outputs is likely to be most useful and easy to interpret? The output shows the distribution(s) of the project's:

• A)sales.
• B)internal rate of return.
• C)cash flows.
• D)profits.

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Definitions:

Expected Frequency

The theoretical number of times an outcome is anticipated to occur in a statistical experiment based on the total number of observations and the probabilities of outcomes.

Uniformly Distributed

Describes a distribution where all outcomes are equally likely to occur.

Capital Punishment

A legal penalty where a person is sentenced to death by the state as punishment for a crime.

Poisson Distribution

A discrete probability distribution expressing the probability of a given number of events occurring in a fixed interval of time or space, assuming that these events occur with a known constant mean rate and independently of the time since the last event.