问题如下:
In completing her analysis, Maxwell considers her choice of simulation analysis over alternative approaches, such as decision trees and scenario analysis, to be justified. Although scenario analysis and decision trees both consider possible outcomes, neither can be used easily when correlated variables are present. Further, she notes that, compared with scenario analysis and decision trees, simulation is best suited for continuous risks, whether they be concurrent or sequential.
Maxwell’s justifications for her choice of simulation analysis are correct with respect to:
选项:
A.correlated risks.
continuous risks.
both correlated risks and continuous risks.
解释:
C is correct. Correlated risks are difficult to model in decision trees. In addition, adjusting scenario analysis for correlated risks is subjective. Scenario analysis and decision trees are generally built around discrete outcomes in risky events, whereas simulations are better suited for continuous risks. Further, if the various risks to which an investment is exposed are correlated, simulations allow for explicitly modeling these correlations if they can be estimated.
为什么correlation variables不能用于Decision Tree和Scenario Analysis? 能详细点解释吗?这部分学的不是很明白