Question

A marketing director needs to estimate the demand for a new product and she obtains the pessimistic, the optimistic and the most likely estimates of the demand from the company's store manager. What probability distribution should be used to describe this random variable in computer simulation?

		Uniform distribution
		Triangular distribution
		Exponential distribution
		Normal distribution
		Binomial distribution

QUESTION

Which of the following statements is true with regard to uncertain variables in RSPE software?

		Each uncertain variable must have a discrete probability distribution
		Uncertain variables are input variables
		The value of the uncertain variable is fixed during most simulation runs
		Uncertain variables are output variables
		All of the above

QUESTION

Which of the following statements is true?

		The exponential distribution is not useful for describing the time between random events.
		The normal distribution is a good choice when all values within a range are equally likely.
		The triangular distribution has a fixed upper and lower bound.
		The normal distribution has a fixed upper and lower bound.
		The normal distribution describes the number of times an event occurs in a fixed number of trials.

Answer 1

A marketing director needs to estimate the demand for a new product and she obtains the pessimistic, the optimistic and the most likely estimates of the demand from the company's store manager. What probability distribution should be used to describe this random variable in computer simulation?

		Normal distribution

Under the Normal Distribution, Three point estimation methods or PERT method is used to describe the random variable based on Pessimistic, optimistic or most likely cases under computer simulation.

QUESTION

Which of the following statements is true with regard to uncertain variables in RSPE software?

		Uncertain variables are input variables

While all other statements do not support the uncertainty variables in RSPE Software, only the above supports the same.

QUESTION

Which of the following statements is true?

		The triangular distribution has a fixed upper and lower bound.

The Triangular distribution falls into the category of continuous probability distribution wherein the bounded intervals are fixed in case of continuous univariate data.