You Are Reviewing a Simulation Model and Find That the Analyst

question 37

Multiple Choice

You are reviewing a simulation model and find that the analyst who prepared the model used the formula = 15 + (45 − 15) × RAND() to generate the simulated cost of a product. Which of the following assumptions did the analyst make about the cost of the product?
I. The minimum cost of the product is 15.
II. The maximum cost of the product is 60.
III. The cost of the product is uniformly distributed.

• A) I only
• B) II only
• C) III only
• D) I and II only
• E) I and III only