Asked by Deniza Marcinkevica on Jun 24, 2024
Verified
Explain the Correlation Matrix tool used in Crystal Ball.
Correlation Matrix Tool
A table showing the correlation coefficients between sets of variables, used to determine the degree and direction of relationships.
Crystal Ball
A software product used for simulation, forecasting, and optimization.
- Understand the application of tools like the Correlation Matrix, Bootstrap tool, and Tornado Charts within Crystal Ball to improve analysis.
Verified Answer
AS
Ahmad SahyounJun 26, 2024
Final Answer :
In Crystal Ball each random input variable is assumed to be independent of the others; that is,random variates are sampled independently from each assumption distribution during the course of the simulation.In many situations,this is not realistic because assumptions would naturally be related to one another,and we would want to explicitly model such dependencies between variables.The Correlation Matrix tool allows you to define correlations between groups of assumptions in a model.
Learning Objectives
- Understand the application of tools like the Correlation Matrix, Bootstrap tool, and Tornado Charts within Crystal Ball to improve analysis.
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