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:

UCC

The extensive array of commercial transaction laws in the United States is known as the Uniform Commercial Code.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a set of rules governing international sales contracts.

International Sale

The process of selling goods or services across national borders, subject to different countries' laws and trade agreements.

Treaty

A binding agreement between two nations or international organizations.