Consider a situation where there is a cost that is either incurred or not. It is incurred only if the value of some random input is less than a specified cut-off value. Why might a simulation of this...

Consider a situation where there is a cost that is either incurred or not. It is incurred only if the value of some random input is less than a specified cut-off value. Why might a simulation of this situation give a very different average value of the cost incurred than a deterministic model that treats the random input as fixed at its mean? What does this have to do with the “flaw of averages”?