Skip to content

CMA Intermediate · Operations Management and Strategic Management · Simulation and Line Balancing

Which statement about Monte Carlo simulation is correct?

Monte Carlo simulation requires a probability distribution for the uncertain variables, since random numbers are mapped to values according to that distribution. It suits probabilistic systems and gives approximate, not exact optimal, results.

  1. AIt gives an exact optimal solution for every problem
  2. BIt cannot be used when the system involves uncertainty
  3. CIt requires a probability distribution for the uncertain variablesCorrect
  4. DIt requires that the system be deterministic

Explanation

Monte Carlo simulation samples uncertain variables from specified probability distributions using random numbers. It is used for probabilistic systems and gives approximate results, not guaranteed optima.

Did you get it right without looking?

One question tells you little. A timed set on Simulation and Line Balancing shows your real accuracy, how long you take and where you lose marks.

Practise Simulation and Line BalancingFree diagnostic mock

More Simulation and Line Balancing questions