(All answers were generated using 1,000 trials and native Excel functionality.)
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:
Procurement Cost ($) |
Probability |
Labor Cost ($) |
Probability |
Transportation Cost ($) |
Probability |
10 | 0.25 | 20 | 0.10 | 3 | 0.75 |
11 | 0.45 | 22 | 0.25 | 5 | 0.25 |
12 | 0.30 | 24 | 0.35 | ||
25 | 0.30 |
(a) | Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average? |
Round your answers to two decimal places. | |
Lower Bound: $ | |
Upper Bound: $ | |
(b) | Management believes that the project may not be sustainable if the profit per unit is less than $5. Use simulation to estimate the probability that the profit per unit will be less than $5. What is a 95% confidence interval around this proportion? |
Round your answers to one decimal of a percentage. | |
Lower Bound: % | |
Upper Bound: % |
(All answers were generated using 1,000 trials and native Excel functionality.) The management of Brinkley Corporation...
(All answers were generated using 1,000 trials and native Excel functionality.)The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($)ProbabilityLaborCost ($)ProbabilityTransportationCost ($)Probability100.25200.1030.75110.45220.2550.25120.30240.35250.30 (a)Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average?Round...
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($)ProbabilityLabor Cost ($)ProbabilityTransportation Cost ($)Probability100.25200.1030.75110.45220.2550.25120.30240.35250.30a) Construct a simulation model to estimate the mean profit per unit. b) Management believes that the project may not be sustainable if the profit per unit is...
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30 a) Construct...
(All answers were generated using 1,000 trials and native Excel functionality.) Statewide Auto Insurance believes that for every trip longer than 10 minutes that a teenager drives, there is a 1 in 1,000 chance that the drive will results in an auto accident. Assume that the cost of an accident can be modeled with a beta distribution with an alpha parameter of 1.5, a beta parameter of 3, a minimum value of $500, and a maximum value of $20,000. Construct...
Problem 16-01 The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30...
All answers were generated using 1,000 trials and native Excel functionalty ) the management of Brsey Corporation is interested in using simlation to estimate the prafit per unit for a new product. The selling price cost, the labor cost, and the transportation cest are estimated s folow for the product wll be 945 per ntProbability bion orth p Transpertation Cost (6) Probability Cost (9) Probability Cest () Probebility 075 0.10 42225 .30 24 0.35 250.30 10 252 0.25 12 All...
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(Fill in the blanks) The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $50 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability 10 0.3 20 0.15 3 0.7 11 0.35 22 0.25 5 0.3 12 0.35 24 0.3...
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