The effect of the shapes of input distributions on the distribution of an output can depend on
Question:
For each of the following outputs, run two @RISK simulations, one with the normally distributed inputs and one with the triangularly distributed inputs, and comment on the differences between the resulting output distributions. For each simulation run 10,000 iterations.
a. Let the output be the average of the inputs.
b. Let the output be the maximum of the inputs.
c. Calculate the average of the inputs. Then the output is the minimum of the inputs if this average is less than 1000; otherwise, the output is the maximum of the inputs.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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