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NEW QUESTION: 1
Because of the large number of factors that could affect the demand for its new product, interactions among these factors, and the probabilities associated with different values of these factors, the marketing department would like to develop a computerized model for projecting demand for this product. By using a random-number procedure to generate values for the different factors, it will be able to estimate the distribution of demand for this new product. This method of estimating the distribution of demand for the new product is called:
A. Linear programming.
B. Differential analysis.
C. Monte Carlo simulation.
D. Correlation analysis.
Answer: C
Explanation:
Simulations that use a random-number procedure to generate values for the inputs are Monte Carlo simulations.
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