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Simulation Is a Method That Uses Repeated Random Sampling of Values

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Simulation is a method that uses repeated random sampling of values in order to represent uncertainty in a model that represents a real system and computes the values of model outputs.


Definitions:

Limited Liability

The liability of the owners of a corporation is limited to the value of the shares in the firm that they own.

Proprietorship

An unincorporated business firm owned by just one person.

Corporation

A legal entity that is separate from its owners, offering limited liability to its shareholders, and having the ability to enter into contracts, loan and borrow money, sue and be sued.

Financial Intermediary

An institution that facilitates the channeling of funds between lenders and borrowers, such as banks, investment funds, and insurance companies.

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