Which One of the Following Statements Regarding Simulation Analysis Is

question 51

Multiple Choice

Which one of the following statements regarding simulation analysis is FALSE?

• A)Simulation analysis is a form of hypothesis testing.
• B)In simulation,dependent variables reflect the values of both the decision variables and the uncontrollable variables.
• C)Statistical methods require the replication of simulation runs.
• D)Each time a simulation model is run for a given set of decision variables,the same random numbers must be used.

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Definitions:

Average Variable Cost

The cost of labor, material, or overhead that changes in direct proportion to the level of production or output.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Fixed Cost

A fixed cost is a business expense that remains constant regardless of the volume of goods or services produced by an entity.

Insurance Premiums

Payments made to an insurance company in exchange for coverage, protecting against financial losses from specified risks.