Develop a second approach to solving this problem, this time without simulation. Compare the results. How does it affect Brennan’s policy decision using simulation?

Fin 534 – the brennan aircraft division

Without simulation, one approach is to create a model that considers all scenarios and associated costs. It could be as simple as calculating the cost of the policy. This would include factors like the likelihood of each scenario happening, any repairs required or maintenance costs, and the time it will take to make any investment payoff. An analysis of the trade-offs in between initial investment and potential savings could be done. This can provide valuable information for considering other options.
Brennan can compare simulation’s results to better see how policy decisions might impact different outcomes and then make informed decisions. He might decide not to spend resources on preparing for certain events, but if it turns out that there may be significant savings in the future then investing could make sense. Access to real-world and simulated data is a great way to make more informed decisions that will benefit the business.

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