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:

Inventory

The complete list of items such as merchandise, raw materials, and products that are in stock within a business's possession.

Credentialization

Refers to the increasing demand for formal educational qualifications or credentials for employment or social status.

Meritocracy

A social system in which advancement in society is based on an individual's capabilities and merits rather than on the basis of family, wealth, or social background.

Allocation

The process of distributing resources, goods, or responsibilities among people, organizations, or sectors in a society.