Which of the Following Is/are Included in the List of Drawbacks

question 6

Multiple Choice

Which of the following is/are included in the list of drawbacks to using the Monte Carlo simulation for dealing with risk in capital budgeting?

• A)Cash flows still have to be estimated subjectively.
• B)Individual cash flows generally don't behave independently. If one cash flow turns out to be less than expected, several other may behave the same way.
• C)Even after creating a distribution of probably outcomes, it is difficult to know exactly how to interpret the data.
• D)Both a. and c. are drawbacks.
• E)All of the above are drawbacks.

---

Definitions:

Conservation

A principle in cognitive development referring to the understanding that quantity or mass remains the same regardless of changes in shape or arrangement.

Class Inclusion

A concept in cognitive development where a child understands that some objects or categories of objects can belong to or be a part of another category.

Relatives

Family members or individuals related by blood, marriage, or adoption, often sharing genetic ties and social bonds.

Scaffolding

An educational process where a teacher provides successive levels of temporary support that help students achieve higher levels of comprehension and skill acquisition.