Question

What does Simulation Analysis involve in terms of values and probability distribution?

a.

Determining NPV

b.

Plotting frequency distribution of NPV

c.

Selecting values from probability distribution

d.

Assessing and evaluating proposed investments

Posted under IC 89 Management Accounting

Answer: (c).Selecting values from probability distribution Explanation:Simulation Analysis involves selecting values at random from probability distribution for variables/alternatives.

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Q. What does Simulation Analysis involve in terms of values and probability distribution?
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