CEVAP:

Many decisions are made under uncertainty situations. For example, a company that wants to offer a new product to the market should plan the size of the manufacturing facility that needs to be built to produce this product. However, it does not know what the demand for this new product and the startup cost of developing it will be. In such cases of uncertainty, two different ways are followed to make a good decisions. One of them is the simulation which different combinations of possible demands and startup costs will be tried on the computer. Thus, this simulation can give us a better idea of the possible values of the profit obtained. The other method is to use mathematical and statistical methods to calculate the expected value of the profit without simulation.