Essay on brs mdm3 tif ch10

3064 Words Jan 18th, 2015 13 Pages
Managerial Decision Modeling w/ Spreadsheets, 3e (Balakrishnan/Render/Stair)
Chapter 10 Simulation Modeling

10.1 Chapter Questions

1) John Smith is planning to refinance his home mortgage to take advantage of the lower current interest rates. As part of the refinancing application, the bank needs to appraise Mr. Smith's home. Mr. Smith expects an appraisal of at least $175,000 but no more than $250,000. All values between $175,000 and $250,000 have the same probability of being the actual appraised value. What is the appropriate distribution for simulating appraisal values?
A) continuous uniform
B) triangular
C) binomial
D) discrete uniform
E) normal
Answer: A
Page Ref: 415
Topic: Role of Computers in Simulation
Difficulty:
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A) forecasts
B) decisions
C) assumptions
D) random variables
E) cell preferences
Answer: A
Page Ref: 441
Topic: Simulation Model of an Inventory Problem Using Crystal Ball
Difficulty: Moderate
13) Which of the following is considered a disadvantage of simulation?
A) Simulation models do not allow for time compression.
B) Simulation models do not allow for what-if analysis.
C) Simulation models cannot emulate real systems.
D) Simulation models do not generate optimal solutions.
E) Simulation models are not unique.
Answer: D
Page Ref: 410
Topic: Introduction
Difficulty: Moderate

14) The sum of all previous probabilities up to the current probability is the ________.
A) cumulative probability
B) conditional probability
C) marginal probability
D) prior probability
E) posterior probability
Answer: A
Page Ref: 412
Topic: Monte Carlo Simulation
Difficulty: Moderate

15) Simulation usually generates optimal solutions.
Answer: FALSE
Page Ref: 410
Topic: Introduction
Difficulty: Moderate

16) Simulation results can produce different solutions in repeated runs.
Answer: TRUE
Page Ref: 410
Topic: Introduction
Difficulty: Moderate

17) The uniform

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