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Questions and Answers
What is the main characteristic of the Monte Carlo Simulation approach to decision making?
What is the main characteristic of the Monte Carlo Simulation approach to decision making?
- Relies on measurable input data
- Assumes patterns in success or failures
- Relies on subjective estimates
- Uses randomness to assign weightings (correct)
How does the Monte Carlo Simulation differ from the approaches discussed in earlier chapters?
How does the Monte Carlo Simulation differ from the approaches discussed in earlier chapters?
- It uses randomness to assign weightings (correct)
- It uses subjective estimates of likelihoods
- It uses measurable input data
- It relies on assumed patterns in success or failures
What does the Cognitive School of Thought of Strategy emphasize?
What does the Cognitive School of Thought of Strategy emphasize?
- Success patterns in the environment
- Objective decision making
- Quantitative analysis
- Subjective construction of individual reality (correct)
In the Monte Carlo Simulation, how are weightings assigned to potential outcomes?
In the Monte Carlo Simulation, how are weightings assigned to potential outcomes?
What aspect of decision making does the Monte Carlo Simulation not rely on?
What aspect of decision making does the Monte Carlo Simulation not rely on?
Which method allows managers to make recommended decisions without considering the context of those decisions?
Which method allows managers to make recommended decisions without considering the context of those decisions?
What is the key role that randomness plays in the Monte Carlo Simulation?
What is the key role that randomness plays in the Monte Carlo Simulation?
In what way does the Monte Carlo Simulation differ from relying on subjective estimates?
In what way does the Monte Carlo Simulation differ from relying on subjective estimates?
What aspect of strategic decision making does the Cognitive School of Thought emphasize?
What aspect of strategic decision making does the Cognitive School of Thought emphasize?
How does the Monte Carlo Simulation assign weightings to potential outcomes?
How does the Monte Carlo Simulation assign weightings to potential outcomes?
In the context of the Monte Carlo Simulation, what role do forecast probabilities play?
In the context of the Monte Carlo Simulation, what role do forecast probabilities play?
What differentiates the Monte Carlo Simulation from relying on assumed patterns in the environment?
What differentiates the Monte Carlo Simulation from relying on assumed patterns in the environment?
Which methodology does the Monte Carlo Simulation not rely on for decision making?
Which methodology does the Monte Carlo Simulation not rely on for decision making?
What does the Monte Carlo Simulation use to generate likely combinations of cash flow?
What does the Monte Carlo Simulation use to generate likely combinations of cash flow?
Which approach to decision making does the Monte Carlo Simulation deviate from by not relying on measurable input data?
Which approach to decision making does the Monte Carlo Simulation deviate from by not relying on measurable input data?
What characteristic of the Monte Carlo Simulation distinguishes it from methods that rely on subjective estimates?
What characteristic of the Monte Carlo Simulation distinguishes it from methods that rely on subjective estimates?
'Cash in' and 'Cash out' are used in the Monte Carlo Simulation to represent what aspects of decision-making?
'Cash in' and 'Cash out' are used in the Monte Carlo Simulation to represent what aspects of decision-making?
How do likely combinations of cash flow occur more frequently in the Monte Carlo Simulation?
How do likely combinations of cash flow occur more frequently in the Monte Carlo Simulation?
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