You Are Reviewing a Simulation Model and Find That the Analyst

question 43

Multiple Choice

You are reviewing a simulation model and find that the analyst who prepared the model used the formula = 100 + (175 − 100) × RAND() to generate the simulated selling price of a product. Which of the following assumptions did the analyst make about the selling price of the product?
I. The minimum price of the product is 175.
II. The maximum price of the product is 175.
III. The cost of the product is normally distributed.

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

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Definitions:

Multidimensional Space

An abstract mathematical concept, involving more than three dimensions, that can represent complex data structures or physical phenomena.

Mean Squares for Error MSE

A measure used in statistical modeling to quantify the variance of error terms.

Predictor Variables

Variables used in statistical models to predict or estimate the value of an outcome or dependent variable.

Predictor Variable

A variable that is used in statistical models to predict or explain changes in a dependent variable.