SOLVED

Section 3Â Â Monte Carlo Simulation 1) By starting random number intervals at 01, not 00, the top of each range is the cumulative probability. 2) A simulation is “Monte Carlo” when the elements of a system being simulated exhibit chance in their behavior. 3) Random number intervals are based on cumulative probability distributions. 4) The Las Vegas method is a simulation technique that uses random elements when chance exists in their behavior. 5) Setting up a probability distribution, building a cumulative probability distribution, and generating random numbers are: A) necessary when the underlying probability distribution is normal. B) three of the five steps in Monte Carlo simulation. C) elements of physical simulation but not mathematical simulation. D) the elements of the threefold idea behind simulation. E) advantages of simulation. 6) Which of the following is NOT a step in running a Monte Carlo simulation? A) setting up a probability distribution for important variables B) building a cumulative probability distribution for each variable C) establishing an interval of random numbers for each variable D) generating random numbers E) All of the above are steps in running a Monte Carlo simulation. 7) From a portion of a probability distribution, you read that P(demand = 0) is 0.05 and P(demand = 1) is 0.10. The cumulative probability for demand = 1 would be which of the following? A) 0.05 B) 0.075 C) 0.10 D) 0.15 E) 0.005 8) From a portion of a probability distribution, you read that P(demand = 1) is 0.05, P(demand = 2) is 0.15, and P(demand = 3) is .20. The cumulative probability for demand = 3 would be which of the following? A) 0.133 B) 0.200 C) 0.400 D) 0.600 E) Cannot be determined from the information given. 9) From a portion of a probability distribution, you read that P(demand = 0) is 0.05, P(demand = 1) is 0.10, and P(demand = 2) is 0.20. What are the two-digit random number intervals for this distribution beginning with 01? A) 01 through 05, 01 through 10, and 01 through 20 B) 00 through 04, 05 through 14, and 15 through 34 C) 01 through 05, 06 through 15, and 16 through 35 D) 00 through 04, 00 through 09, and 00 through 19 E) 01 through 06, 07 through 16, and 17 through 36 10) From a portion of a probability distribution, you read that P(demand = 0) is 0.25, and P(demand = 1) is 0.30. What are the random number intervals for this distribution beginning with 01? A) 01 through 25, and 26 through 30 B) 01 through 25, and 01 through 30 C) 01 through 25, and 26 through 55 D) 00 through 25, and 26 through 55 E) 00 through 25, and 26 through 30