A marketing director needs to estimate the demand for a new product and she obtains the pessimistic, the optimistic and the most likely estimates of the demand from the company's store manager. What probability distribution should be used to describe this random variable in computer simulation?

Uniform distribution

Triangular distribution

Exponential distribution

Normal distribution

Binomial distribution

Question 5 When applying simulation to a business problem, which of the following would commonly be an uncertain variable cell?

		The total profit.
		The holding cost per unit.
		The demand.
		All of the above.
		None of the above.

Question 6 When choosing a probability distribution in an RSPE simulation, it is important to:

		visually check the similarity between the sample data histogram and the fitted distribution curve
		define one or more decision variable cells
		apply a parameter analysis to study the goodness of fit
		run a sufficient number of simulation trials