The Main Reason That a Large Number of Replications of a Simulation

question 5

Multiple Choice

The main reason that a large number of replications of a simulation would be made is:

• A)computers are usually used,and they can easily handle a large number of replications
• B)it is part of the scientific approach
• C)it is a form of sampling,and large samples give more accurate results than small samples
• D)it is more likely to provide optimal answers
• E)None of the above

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Definitions:

Fair Value

The value likely to be obtained from disposing of an asset or the expense incurred in transferring a liability, within a structured exchange involving market entities at the time of assessment.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the identifiable assets and liabilities.

Liabilities Assumed

Obligations that a company takes on as part of a transaction, such as purchasing another company or assets.

Identifiable Assets

Assets that can be separated and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract.