Module 4 Take Home Assignment # 6 – Risk Management and Decision Making
Instructions:
- Answer all questions.
- Organize your work suitably.
Questions:
- What are the benefits and limitations of using Monte Carlo analysis in the risk management and decision making process?
- Demonstrate how Monte Carlo simulation can be used in the policy setting and explain why might a manager be forced to use simulation instead of an analytical model in dealing with a problem of the U.S economy?