@Risk question

haminh

New Member
Joined
Jun 27, 2007
Messages
13
Hello all,

I just learned about @Risk and I have a question about it. I have 6 possible values for the number of guest want to reserve the room. I would like to make a decision on how many rooms I want to reserve based on the total cost. I ran the simulation and came up with 2 numbers, one has lowest average cost, the other has lowest standard deviation. Which one should I use in this case?

It would be very nice if you could help me with this question. Thanks in advance

Cheers,
 

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mortgageman

Well-known Member
Joined
Jun 30, 2005
Messages
2,015
Hello all,

I just learned about @Risk and I have a question about it. I have 6 possible values for the number of guest want to reserve the room. I would like to make a decision on how many rooms I want to reserve based on the total cost. I ran the simulation and came up with 2 numbers, one has lowest average cost, the other has lowest standard deviation. Which one should I use in this case?

It would be very nice if you could help me with this question. Thanks in advance

Cheers,

You may want to ask the people who (presumably) sold you @risk. Here is their website:


http://www.palisade.com/risk/default.asp
 

Giordano Bruno

Well-known Member
Joined
Jan 7, 2007
Messages
1,231
Hi haminh.

I use @RISK, but not for this sort of application. If you are looking for the best option based on the cost, I would think that you should be looking at the cost, not the standard deviation.
 

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