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No you don't have to. However if it asks for you to do so, then i think you should. Since Labview is a general programing language, and if you know signal process, you can write you own simulations quite easy.
I don't want to install the trial version of labview to get simulated DAQ. i already have Labview 6 installed.
There should be some other way to add it. I'm not an expert and i can't write my own simulations. I can't seem to find it in the instrupedia cd.
Simulated Daq is installed by default in labview student version since students can't afford to buy the daq board so they can use the simulated daq instead.