You Are Reviewing a Simulation Model and Find That the Analyst

question 62

Multiple Choice

You are reviewing a simulation model and find that the analyst who prepared the model used the formula =NORM.INV(RAND() ,50,3) to generate the cost of a product. Which of the following assumptions did the analyst make about the product cost?
I. The minimum cost is 50.
II. The average (mean) cost is 50.
III. The cost is uniformly distributed.

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

---

Definitions:

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.

Agoraphobia

An anxiety disorder characterized by intense fear and avoidance of places or situations where escape might be difficult or help might not be available.

Agora

In ancient Greece, a public open space used for assemblies and markets.

Pyromania

A psychological disorder characterized by an irresistible urge to start fires.