CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

Your company is considering starting a new production division. In the simulation model one probabilistic variable is future sales. The number of simulations will be largest if the future sales amount is assumed to:
A. be normally distributed with a mean of 50k and a standard deviation of 10,000.
B. have a uniform distribution.
C. be based on historical sales distributions of competitors in the industry.
Explanation: Future sales amounts based on the historical sales distributions of competitors will indicate the greatest diversity in future sales and thus the number of required simulations will be the largest.

User Contributed Comments 1

User Comment
JensG I guess its the one that is most uncertain.
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