Briefly describe the procedure to run a simulation. What will ...

[cmoore54]

Briefly describe the procedure to run a simulation.
 
  What will be an ideal response?

Question 2

Determine the optimal profit contribution of the C-type steel sheets. (Hint: Use Solver)
 
  A) 39,000
  B) 390,000
  C) 200,000
  D) 20,000

[yasmina]

Answer to Question 1

Prior to running a simulation, you need to set some specifications for the simulation. To do this, select the Run Preferences item from the Run group. The first dialog box has several tabs. The first tab Trials, allows you to choose the number of times that Crystal Ball will generate assumptions for the assumption cells in the model and recalculate the entire spreadsheet. In the Sampling tab, you can choose to use the same sequence of random numbers for generating the random variates in the assumption cells; this will guarantee that the same assumption values will be used each time you run the model.
Crystal Ball has two types of sampling methods: Monte Carlo and Latin Hypercube.
Latin Hypercube sampling results in a more even distribution of forecast values because it samples the entire range of the distribution in a more consistent manner, thus achieving more accurate forecast statistics for a fixed number of Monte Carlo trials. However, Monte Carlo sampling is more representative of reality and should be used if you are interested in evaluating the model performance under various what-if scenarios.
The last step is to run the simulation by clicking the Start button in the Run group and watch Crystal Ball go to work You may choose the Step run option if you wish to see the results of individual trials.

Answer to Question 2

C