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

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