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Management · Q166

Operations Research or Qualitative Approach

Graduate and Post Graduate · Management · question 166

Q166

While assigning random numbers in Monte Carlo simulation, it is?

A.
Not necessary to assign the exact range of random number interval as the probability
B.
Necessary to develop a cumulative probability distribution
Answer
C.
Necessary to assign the particular appropriate random numbers
D.
All of the above

Answer: Option B

Solution

Answer: Option B
Solution:
While assigning random numbers in Monte Carlo simulation, it is Necessary to develop a cumulative probability distribution. A cumulative probability refers to the probability that the value of a random variable falls within a specified range. Frequently, cumulative probabilities refer to the probability that a random variable is less than or equal to a specified value.