There are different simulation techniques or models that can be used. For example, four such techniques or models include: (i) agent-based modeling and simulation, (ii) discrete event simulation, (iii) system dynamics simulation, and (iv) Monte Carlo simulation. Review these answer choices below and select the choice that best explains when we would use a Monte Carlo simulation.

Group of answer choices

When we want to model a single, specific future known as a scenario.

When we want to simulate many different futures or scenarios based on probability distributions associated with past observations.

When we only care about variation and not about computing average values such as average wait time, average service time etc.

When we are only interested in average vaues, and don't care to include any data range (i.e., data variation or some level of data uncertainty) in the model.