Question 7

Which of the following is TRUE regarding the use of simulation?

		It allows time-compression in testing major policy decisions
		It always yields optimal solutions
		It is always very easy to build a simulation model
		It may interfere with real-world systems

4 points

Question 8

What is the EMV for Option 1 in the following decision table?

	States of Nature
Alternatives	S1	S2
p	.3	.7
Option 1	15,000	20,000
Option 2	10,000	30,000

		17,500
		15,000
		17,000
		18,500