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Articles

Computerized Simulation Models: An Educational Experiment

Pages 38-45 | Published online: 15 Jul 2014
 

Abstract

The major purpose of Gentry's report is to “develop a rationale for use of computerized Monte Carlo simulation models in the economics and finance curricula.” In simulating the capital investment decision-making process, Gentry employed market analysis (including market size and growth), investment analysis, and fixed and variable costs. This simulation is illustrated graphically. The author explains how the sensitivity of each variable is tested, and the use of the computer in testing the relationships hypothesized among the variables. The effect of the simulation on students and on the instruction is briefly described.

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