What does Land Shark need to prepare for executing simulation trials?

• A. A computer program that can solve the equations analytically.
• B. A detailed audit trail of past auctions.
• C. A spreadsheet for the execution of 1,000 simulation trials.
• D. A random seed generator.

Answer: (C)

The main idea is that Monte Carlo simulation works by running a model many times with random inputs to build an empirical distribution of outcomes. To do that, you need a tool that can execute a large number of trials and record the results. A spreadsheet set up to run and store the results of 1,000 simulation trials provides a practical, readily available way to generate random inputs, compute outcomes for each trial, and capture the data you’ll use to estimate means, risks, and percentiles. Other options don’t directly enable executing multiple randomized runs: an analytic solver isn’t needed for simulation, an audit trail of past auctions isn’t required to run new trials, and while a random seed helps with reproducibility, you still need the mechanism to perform the trials themselves.