Which of the Following Is Not a Drawback of the Simulation

question 30

Multiple Choice

Which of the following is not a drawback of the simulation approach?

• A)The probability distributions of the cash flows are subjective estimates.
• B)It can be very difficult to access and use a simulation program.
• C)Cash flows in successive periods tend not to be independent.
• D)There are no clear guidelines on how to interpret the results.

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Definitions:

Society

A structured community of people bound together by similar traditions, institutions, or nationality.

Mourn

To feel or express sorrow or grief, often as a reaction to the death of someone.

Mispell

To write a word with incorrect letters or incorrect arrangement of letters.

Conceive

To conceive means to form or develop an idea, plan, or understanding in the mind.