Decisions Based on Simulation Results

However, this is not necessarily true. When you run a simulation, you approximate the entire distribution of an output, including its mean, its standard deviation, its percentiles, and more. As a decision maker, you could base your decision on any of these summary measures, not just the mean. For example, you could focus on making the standard deviation small, making the 5th percentile large, or others. The point is that the results from a simulation provide a lot more information about an output than simply its mean, and this information can be used for decision making.

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