Question

This is due soon question keeps going unanswered someone please help me

PortaCom manufactures notebook computers and related equipment. PortaCom's product design group developed a prototype for a new high-quality portable printer. The new printer features an innovative design and has the potential to capture a significant share of the portable printer market. Preliminary marketing and financial analyses provided the following selling price, first-year administrative cost, and first-year advertising cost: Selling price = $249 per unit Administrative cost = $400,000 Advertising cost - $600,000 In the simulation model for the PortaCom problem, the preceding values are constants and are referred to as parameters of the model. The cost of direct labor, the cost of parts, and the first-year demand for the printer are not known with certainty and are considered probabilistic inputs. At this stage of the planning process, PortaCom's best estimates of these inputs are $45 per unit for the direct labor cost, $90 per unit for the parts cost, and 15000 units for the first-year demand. The standard deviation of 4500 units describes the variability in the first-year demand. PortaCom would like an analysis of the first-year profit potential for the printer. Because of PortaCom's tight cash flow situation, management is particularly concerned about the potential for a loss. Following the table of random number intervals for generating values of direct labor cost per unit. Direct Labour Cost Interval of Random per Unit Numbers 0.0 but less than 0.1 $43 0.1 but less than 0.3 $44 $45 0.3 but less than 0.7 $46 0.7 but less than 0.9 0.9 but less than 1 $47 a. Set up intervals of random numbers that can be used to generate the change in stock price over a three-month period. If required, round your answers to two decimal places Stock Price Probability Interval Change but less than 3 0.10 but less than 0.10 but less than 0.25 but less than 0.20 but less than +1 0.25 but less than +2 0.05 but less than +3 0.05 b. With the current price of $37 per share and the random numbers 0.5031, 0.6307, 0.3947 and 0.4895, simulate the price per share for the next four 3-month periods Random Number Price Change Ending Price Per Share $ 0.5031 $ 0.6307 $ 0.3947 $ 0.4895 c. Use the random numbers 0.8531, 0.1762, 0.5, 0.681, and 0.2879 and the table for the cumulative standard normal distribution in Appendix B to generate five simulated values for the PortaCom first-year demand. If required, round your answers to the nearest unit. Random Number Demand 0.8531 0.1762 0.5 0.681 0.2879

Answer 1

a)

Interval of random numbers to generate the change in stock price over a three-month period is as follows:

Stock Price Change	Probability	Interval
-3	0.10	0.0 but less than 0.1
-2	0.10	0.1 but less than 0.2
-1	0.25	0.2 but less than 0.45
0	0.20	0.45 but less than 0.65
1	0.25	0.65 but less than 0.9
2	0.05	0.9 but less than 0.95
3	0.05	0.95 but less than 1

ROUND(NORMINV(B22, 15000,4500) ,0) fx C22 A D G 1 a) Intervals of random numbers Stock Price Probability Interval Change -3 0.0 but less than 0.1 3 0.10 0.00 0.1 but less than 0.2 4. -2 0.10 0.10 0.2 but less than 0.45 0.20 -1 0.25 0.45 but less than 0.65 6 0 0.20 0.45 7 0.65 but less than 0.9 1 0.25 0.65 0.9 but less than 0.95 2 0.05 0.90 0.95 but less than 1 0.05 0.95 10 11 12 b) Simulation of share price change Random Price Change Ending Price Per Share 13 Number 14 0.5031 0 37 15 0.6307 0 37 16 0.3947 -1 36 17 0.4895 0 36 18 19 20 c) Simulation of demand for PortaCom Random Demand 21 Number 22 0.8531 19724 23 0.1762 10815 24 0.5 15000 25 0.681 17117 26 0.2879 12482 27 28 L

FORMULAS:

b)	Simulation of share price change
	Random Number	Price Change	Ending Price Per Share
	0.5031	=LOOKUP(B14,$E$3:$E$9,$B$3:$B$9)	=37+C14
	0.6307	=LOOKUP(B15,$E$3:$E$9,$B$3:$B$9)	=D14+C15
	0.3947	=LOOKUP(B16,$E$3:$E$9,$B$3:$B$9)	=D15+C16
	0.4895	=LOOKUP(B17,$E$3:$E$9,$B$3:$B$9)	=D16+C17

c)	Simulation of demand for PortaCom
	Random Number	Demand
	0.8531	=ROUND(NORMINV(B22,15000,4500),0)
	0.1762	=ROUND(NORMINV(B23,15000,4500),0)
	0.5	=ROUND(NORMINV(B24,15000,4500),0)
	0.681	=ROUND(NORMINV(B25,15000,4500),0)
	0.2879	=ROUND(NORMINV(B26,15000,4500),0)