The Grear Tire Company is budgeting for the coming year. Management has determined that the monthly demand for tires follows a normal distribution with a mean of 10,000 and a standard deviation of 7,500. Labor costs are uniformally distributed between $40 and $65 per tire. The cost of raw materials for each tire follows a discrete distributions with the costs of $30, $33, $37, $40, $42, and $46 having a probability of 0.08, 0.19, 0.27, 0.21, 0.16, and 0.09 respectively. Each month, Grear incurs a fixed operating cost of $50,000. Tires sell for $125 each. Construct a simulation indicating monthly profit for 12 months.
Which formula is most similar to the one used to estimate labor costs?
Select one:
a. NORM.DIST()
b. EXPON.DIST()
c. RAND() * (Upper - Lower) + Lower
d. VLOOKUP() e. NORM.INV()
The Grear Tire Company is budgeting for the coming year. Management has determined that the monthly...
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