How are the results of a Monte Carlo simulation analyzed? Question 25 options: M

Question

How are the results of a Monte Carlo simulation analyzed?

Question 25 options:

Monte Carlo simulation results are not analyzed. The results of Monte Carlo simulation speak for themselves.

Monte Carlo simulation results are analyzed using descriptive statistics, such as the mean, standard deviation, and graphs of simulation results.

Monte Carlo simulation results are analyzed using measures of forecast accuracy, such as the mean square error or mean absolute deviation.

Monte Carlo simulation results are analyzed by using Excel's Solver add-in to solve for the optimal solution.

Monte Carlo simulation results are not analyzed. The results of Monte Carlo simulation speak for themselves.

Monte Carlo simulation results are analyzed using descriptive statistics, such as the mean, standard deviation, and graphs of simulation results.

Monte Carlo simulation results are analyzed using measures of forecast accuracy, such as the mean square error or mean absolute deviation.

Monte Carlo simulation results are analyzed by using Excel's Solver add-in to solve for the optimal solution.

Explanation / Answer

Monte Carlo simulation results are analyzed using descriptive statistics, such as the mean, standard deviation, and graphs of simulation results.

Explanation - Monte Carlo simulation is a computerized mathematical technique that allows people to account for risk in quantitative analysis and decision making.

Monte Carlo simulation provides a number of advantages over deterministic, or “single-point estimate” analysis:

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