Why are stochastic inputs paired with distributions in Monte Carlo analysis?

• A. Stochastic inputs are always precise constants; distributions are decorative.
• B. Stochastic inputs are uncertain and distributions capture their likelihoods and tails for probabilistic estimates.
• C. Stochastic inputs only affect the timing of events, not outcomes.
• D. Stochastic inputs must be normal if large samples are used.

Answer: (B)