Which analysis method has a lower standard deviation?

The correct answer is D. Latin Hypercube. Latin Hypercube Sampling (LHS) produces a lower standard deviation compared to standard Monte Carlo simulation. LHS is a stratified sampling technique that divides the probability distribution into equally probable intervals and ensures each interval is sampled exactly once. This

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Options

AEuropean Hypercube
BMonte Carlo simulation
CHecht analysis
DLatin Hypercube

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(32 responses)

A
3% (1)
B
6% (2)
C
3% (1)
D
88% (28)

Explanation

Latin Hypercube Sampling (LHS) produces a lower standard deviation compared to standard Monte Carlo simulation. LHS is a stratified sampling technique that divides the probability distribution into equally probable intervals and ensures each interval is sampled exactly once. This stratification guarantees comprehensive coverage of the entire input space, reducing sampling error and variance. Standard Monte Carlo simulation uses purely random sampling, which can cluster samples in certain regions and miss others, resulting in higher variance. 'European Hypercube' and 'Hecht analysis' are not recognized standard quantitative risk analysis methods and serve as distractors.

Topics

#Latin Hypercube Sampling#Monte Carlo Simulation#Quantitative Risk Analysis#Variance Reduction

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