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Variable

This document demonstrates using distribution functions to model increasing uncertainty over time in projected variables. Values for variables become less certain the further out in time they are projected. This allows simulations to account for rising risk, as the trends for each model variable will widen over time.

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james
Copyright
© © All Rights Reserved
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Download as XLS, PDF, TXT or read online on Scribd
11 views

Variable

This document demonstrates using distribution functions to model increasing uncertainty over time in projected variables. Values for variables become less certain the further out in time they are projected. This allows simulations to account for rising risk, as the trends for each model variable will widen over time.

Uploaded by

james
Copyright
© © All Rights Reserved
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Variable.xls
In this example, distribution functions are used to model increasing uncertainty with time. The values for variables in the
worksheet become less and less certain the further out in time a variable is projected. This technique allows simulation
results to include the effects of increasing uncertainty with time. If you run a simulation the trend for each model variable
will "widen", indicating increased risk.

Period#
Sales Volume
Sales Price
Costs Per Unit
Profit

1
12000
$15.50
$11.00
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e. The values for2variables in the

his technique allows


3 simulation

he trend for each4 model variable

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