Question: (a) How is the simulation process used in Decision Sciences models? What are the advantages of using simulation? What are its limitations? How can a simulation model be verified? Give a real world example where using simulation is appropriate.

(b) What is a capital budgeting integer programming problem? Briefly describe the typical objective function and constraints present in a capital budgeting problem. Give a real world example of a capital budgeting problem.

(c) Briefly describe the different types of queue disciplines. Give one real world example for each type.

(d) Briefly explain Hurwicz’s criterion for decision making. Is this criterion an optimist, conservative, or middle of the road approach? Give a real world example where Hurwicz’s criterion can be useful.