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Chapter 4: Q9DQ (page 437)

What is the purpose of using simulation analysis?

Short Answer

Expert verified

The purpose is to study and analyze changes in variables like inflation, level of sales and economic policy.

Step by step solution

01

Definition of stimulation analysis

Stimulation analysis is defined as the model used to study and analyzes large projects and determine how the target variable are affected by the input variables

02

Purpose of stimulation analysis

The main purpose of stimulation analysis is to test the various combinations which are possible for an event. It is also used to study to test the changes which are possible in economic policy, level of sales, inflation, or any other variable.

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