1. Bothers John and Jason Rogers are trying to establish Illinois RiverHawk Floats to offer rafts for customers to float the Illinois River. 50 rafts are leased from a supplier for a monthly (30 days) cost of $415 per raft. The rafts are rented to customers for $25 per day. Customer demand follows a normal distribution, with a mean of 50 rafts and standard deviation of 8.5 rafts. (Make all demands integers in the model). If all 50 rafts are rented out, customers are referred to another outfitter who has a working relationship with the brothers. a. Set up the model and simulate a month (30 days) of operation to calculate the total monthly profit b. Replicate the simulation for 5 months (the expected float season) and determine the average total monthly profit. Note: this does not mean make 5 copies of the model. Run it 5 times, record and use the results appropriately.

1. Bothers John and Jason Rogers are trying to establish Illinois RiverHawk Floats to offer rafts for customers to float the Illinois River. 50 rafts are leased from a supplier for a monthly (30 days) cost of $415 per raft. The rafts are rented to customers for $25 per day. Customer demand follows a normal distribution, with a mean of 50 rafts and standard deviation of 8.5 rafts. (Make all demands integers in the model). If all 50 rafts are rented out, customers are referred to another outfitter who has a working relationship with the brothers. a. Set up the model and simulate a month (30 days) of operation to calculate the total monthly profit b. Replicate the simulation for 5 months (the expected float season) and determine the average total monthly profit. Note: this does not mean make 5 copies of the model. Run it 5 times, record and use the results appropriately.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If the economy booms, Meyer&Co. stock will have a return of 20.8 percent. If the economy goes into a recession, the stock will have a loss of 13.1 percent. The probability of a boom is 63 percent while the probability of a recession is 37 percent. What is the standard deviation of the returns on the stock? 9.29% 12.43% 13.56% 14.61% 14.61%
You're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your ma the market potential in Malaysia, the Philippines, and Singapore as described in the following table: Success Level Big Mediocre Failure Malaysia Probability 0.5 0.3 0.2 Units 500,000 300,000 0 Philippines Probability 0.2 0.7 0.1 Units 1,400,000 700,000 0 Singapore Probability Units 0.3 0.3 0.4 1,200,000 384,000 0 The product sells for $10, and each unit has a constant marginal cost of $8. Assume that the (fixed) cost of entering the market (regardless of which market you select) is $250,000. In the following table, enter the expected number of units sold, and the expected profit, from entering each market. Market Malaysia Expected Number of Units Sold Expected Profit Philippines Singapore $ If you were to enter one of the previously described markets, which one would you enter in order to earn the highest expected profit?
Use the body temperatures, in degrees Fahrenheit, listed in the accompanying table. The range of the data is 3.3°F. Use the range rule of thumb to estimate the value of the standard deviation. Compare the result to the actual standard deviation of the data rounded to two decimal places, 0.69°F, assuming the goal is to approximate the standard deviation within 0.2°F. The estimated standard deviation is °F. (Round to two decimal places as needed.) Compare the result to the actual standard deviation. The estimated standard deviation is C the actual standard deviation. Thus, the estimated standard deviation Data table the goal. 99 98.2 97.5 98.4 99.2 98 98.7 98.5 98.1 98.1 98.5 99.3 98.7 96.7 96.5 98.7 98 97.3 98.4 98 97.7 98.3 98.9 97.1 99 97.1 98.7 98.6 99.4 97.6 97.6 97.7 97.9 99.4 98.7 99.6 97.8 97.9 99 98.3 97.7 98.7 98.2 98.7 97.6 98 97.7 98.6 98.5 98.3 97.7 99 96.3 98 98.2 96.8 97.3 97.3 97.5 98.5 97.6 97.7 97.2 97.7 98 98.8 99 98.5 98 97.8 97 97.3 99.1 98.7 98.6 98.3 98.4 99 98…
2
A real estate developer must decide on a plan for developing a certain piece of property. After careful consideration, the developer has two acceptable alternatives: residential proposal or commercial proposal. The main factor or state of nature that will influence the profitability of the development is whether or not a shopping center is built close by and the size of the shopping center. There is a 20% chance of no center being built, a 50% chance of a medium shopping center built, and a 30% chance of a large shopping center. If the developer selects the residential proposal and no center is built, he has a further set of options: do nothing $400,000 payoff; build a small shopping center himself $700,000 payoff; or put in a park resulting in $800,000 payoff. Should a medium shopping center be built nearby, his payoff for residential would be $1,600,000 and large shopping center results in a $1,200,000 payoff. If the developer selects the commercial proposal and no center is…
Suppose that Bloomsburg University graduate starting salaries are normally distributed with a mean of $40,712 and a standard deviation of $12,570. What is the probability that a randomly selected graduate's starting salary is below $48,000? 0.848 0.000 0.719 0.281
None
1. A sales man, figure that a contract results in a sale with 2. During a given day, he contacted two prospective clients. Calculate the probability distribution for X, the number of clients who signed the sales contract, so that the variance and standard deviation is found.
Assume that the traffic to the web site of Smiley's People, Inc., which sells customized T-shirts, follows a normal distribution, with a mean of 4.48 million visitors per day and a standard deviation of 900,000 visitors per day. (a) What is the probability that the web site has fewer than 5 million visitors in a single day? If needed, round your answer to four decimal digits, (b) What is the probability that the web site has 3 million or more visitors in a single day? If needed, round your answer to four decimal digits. (e) What is the probability that the web site has between 3 million and 4 million visitors in a single day? If needed, round your answer to four decimal digits. (d) Assume that 85% of the time, the Smiley's People web servers can handle the daily web traffic volume without purchasing additional server capacity. What is the amount of we traffic that will require Smiley's People to purchase additional server capacity? If needed, round your answer to two decimal digits.…
A construction company needs to move lumber onto the roof of a building. If the lumber falls and hits someone it will cause $1,200,000 in damage. Assume that company must choose between the following levels of precaution: Spend $500 and the probability of an accident is .05 Spend $5,000 and the probability of an accident is .01 Spend $8,000 and the probability of an accident is .008 Spend $10,000 and the probability of an accident is .003 If the construction company is strictly liable for the costs of the accident, how much would they spend on precaution? A. $500 B. $5,000 C. $8,000 D. $10,000
A pizza delivery service delivers to a campus dormitory. Delivery times follow a normal distribution with a mean of 20 minutes and a standard deviation of 4 minutes.a. What is the probability that a delivery will take between 15 and 25 minutes?b. The service does not charge for the pizza if delivery takes more than 30 minutes. What is the probability of getting a free pizza from a single order?c. During final exams, a student plans to order pizza five consecutive evenings. Assume that these delivery times are independent of each other. What is the probability that the student will get at least one free pizza?d. Find the shortest range of times that includes 40% of all deliveries from this service.e. For a single delivery, state in which of the following ranges (expressed in minutes) the delivery time is most likely to lie.18-20, 19-21, 20-22, 21-23f. For a single delivery, state in which of the following ranges (expressed in minutes) the delivery time is least likely to lie.18-20,…
Assume that you are working for the Consumer Protection Agency and have recently been getting complaints about the highway gas mileage of the new Dodge Caravans. Chrysler Corporation agrees to allow you to randomly select 40 of its new Dodge Caravans to test the highway mileage. Chrysler claims that the Caravans get 28 mpg on the highway. Your results show a mean of 26.7 and a standard deviation of 4.2. You support Chrysler’s claim. 1. Show whether or not you support Chrysler’s claim by listing the P-value from your output.After more complaints, you decide to test the variability of the miles per gallon on the highway. From further questioning of Chrysler’s quality control engineers, you find they areclaiming a standard deviation of no more than 2.1. Use a one-tailed test.2. Test the claim about the standard deviation.3. Write a short summary of your results and any necessary action that Chrysler must take toremedy customer complaints.4. State your position about the necessity to…