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4. In the simulation model shown below, what is the primary purpose of the standard deviation formula in cell H11? G H A B D

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4. In the simulation model shown below, what is the primary purpose of the standard deviation formula in cell H11? G H A B D E F 1 Annual cashflow projection using Monte Carlo simulation 2 Innovative Speakers 3 4 Fixed expenses 60,000 5 Variable expenses 30 6 Sales forecast 625 7 Sales forecast Standard Dev. 72 8 Unit price 129 9 10 Profit/loss 16,755 Mean Min 11 16,808 (14,834) 12 Sales Profit/loss 13 Trials 625 16,755 14 707 27,397 15 618 15,838 16 508 1,671 Max StDev 40,393 =STDEV(C13:C1014) To select a probability distribution for generating random variables To add a constraint needed for an optimization function To help assess risk None of these are the primary purpose

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