Question

what method uses repeated random sampling to estimate the probability of various outcomes?
a. expected outcomes calculation
b. monte carlo simulations
c. risk analysis
d. bayesian thinking

Explanation:

• Expected Outcomes Calculation: Focuses on calculating the average value of a random variable based on probabilities, not repeated random sampling for outcome probability estimation.
• Monte Carlo Simulations: Utilize repeated random sampling to model the probability of different outcomes.
• Risk Analysis: Involves identifying, assessing, and prioritizing risks but not specifically defined by repeated random sampling for outcome probability estimation.
• Bayesian Thinking: Deals with updating probabilities based on new evidence, not repeated random sampling for outcome probability estimation.

Answer:

B. Monte Carlo Simulations