How Should One Determine Which RNGs to Employ in a Spreadsheet

question 58

Multiple Choice

How should one determine which RNGs to employ in a spreadsheet simulation model?

• A) Use the Analytic Solver Platform gallery and pick a distribution.
• B) Generate thousands of samples and compare the resulting histogram to ensure the distribution is correct.
• C) Solve the deterministic model repeatedly and use Analytic Solver Platform distribution fitting tools.
• D) The distributions selected should represent the underlying pool of values expected to occur.

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Definitions:

Standard Direct Materials

The predetermined cost and quantity of direct materials that are expected to be used in the production of a product.

Direct Materials Price

The cost per unit of raw materials used in the production of goods.

Standard Costs

predetermined costs assigned to goods and services, used as a benchmark for measuring performance.

Standard Price

The predetermined cost of acquiring goods and services, often used in budgeting and cost control.