A shortcut can apply in some situations. If we had all normal distributions and we simply wanted to add or subtract ranges—such as a simple list of costs and benefits—we might not have to run a Monte Carlo simulation. If we just wanted to add up the three types of savings in our example, we can use a simple calculation. Use these six steps to produce a range: Subtract the midpoint from the upper bound for each of the three cost savings ranges: in this example, $20 – $15 = $5 for maintenance savings; we also get $5 for labor savings and $3 for materials savings. Square each of the values from
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