Question 2 (Simulation)The management of Brinkley Corporation is interested in using simulation to estimate the profit perunit for a new product. Probability distributions for the purchase cost, the labor cost, and thetransportation cost are as follows:LabourCostTransportationCost (S)PurchaseCost (S)Probability(S)ProbabilityProbability100.25200.10.75110.45220.250.25120.3240.35250.3Assume that these are the only costs and that the selling price for the product will be 545 per unit.a. Provide the base (most likely)-case, worst-case, and best-case calculations for the profit per unit.b. Set up intervats of random numbers that can be used to randomly generate the three costcomponents, and find the average profit based on 10 simulation trials. Show your simulationmodel (including the formulas sed) as developed with Excel.e. Using the random numbers 0.3726, 0.5839, and 0.8275, calculate the profit per unit. (d. Management believes the project may not be profitable if the profit per unit is less than $5.Explain how simulation can be used to estimate the probability the profit per unit will be less thanS5. (:

Given The management of Brinkley Corporation is interested in using simulation to estimate the…

Answered: b. Set up intervals of random numbers…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

Please help
Joan's Nursery specializes in custom-designed landscaping for residential areas. The estimated labor cost associated with a particular landscaping proposal is based on the number of plantings of trees, shrubs, and so on to be used for the project. For cost estimating purposes, managers use two hours of labor time for the planting of a medium- sized tree. Actual times from a sample of 10 plantings during the past month follow (times in hours). Select your answer - 2 t Họ:1 H₂H b. Compute the sample mean. (to 2 decimals) c. Compute the sample standard deviation. (to 4 decimals) d. Find the test statistic and p-value. (Use Table 2 in Appendix B.) - Select your answer - 2 ✓ (to 3 decimals) 2.9 3.4 With a 0.05 level of significance, test to see whether the mean tree-planting time differs from two hours. a. State the null and alternative hypotheses. Select your answer - 1.5 v 2.4 1.6 4 2.6 p-value e. What is your conclusion? We Select your answer-reject the null hypothesis. There - Select…
a. Estimate the regression line and also write the prediction equation. y = 83.4578-5.8795 x y = 5.8795 + 83.4578 x ŷ ŷ= = -5.8795 + 83.4578 x = 83.4578 + 5.8795 x
A magazine collected the ratings for food, decor, service and the cost per person for a sample of 104 restaurants. They combined the ratings to create a summated rating and used that to predict the cost of a restaurant meal. The data are modeled by Yi=−28.781+1.0138Xi, where Xi is the summated ratings and Yi is meal cost. For these data, SYX=8.246, X=61.63, and hi=0.026171 when X=53 A. Construct a 95% confidence interval estimate of the mean cost of a meal for restaurants that have a summated rating of 53. B. Construct a 95% prediction interval of the cost of a meal for an individual restaurant that has a summated rating of 53.
As a sales analyst for the shoe retailer Foot Locker, one of your responsibilities is measuring store productivity and then reporting your conclusion back to management. Foot Locker uses sales per square foot as a measure of store productivity. While preparing your report for the second quarter results (Q2), you are able to determine that annual sales for last year ran at a rate of $406 per square foot. Therefore, $406 per square foot will be your sales estimate for the population of all Foot Locker stores during Q2. For your Q2 Sales Report, you decide to take a random sample of 64 stores. Using annual data from last year, you are able to determine that the standard deviation for sales per square foot for all 3,400 stores was $80. Therefore $80 per square foot will be your population standard deviation when compiling your Q2 report. Management has asked for the probability that your sample mean based on 64 stores is 1) within $15 and 2) within $5 of the population mean…
Obtain the descriptive statistics for each type of fertilizer. Interpret the result
Sean also took the SAT (μ=1010,σ=200) and had a z score of +0.25. What was his SAT raw score? What was his percentile?
Cory is serving coffee in a large reception with many guests. There are two kinds of coffee: regular anddecaf. So far, he has served 71 cups of regular and 49 cups of decaf.Question 3.Based on the information so far:(a) Estimate the proportion of coffee-drinking guests who prefer regular.
The number of employees working for Fly Me to the Moon Airlines in 2005 was 16,633, with an expected decrease of 4.4%4.4% per year. At the rate of decrease given, what is the expected number of employees working at Fly Me to the Moon Airlines in 2006? Round your answer to the nearest integer.
In multiple regression, when all independent variables are considered but the order in which they are added to the model is determined by the amount it contributes to the dependent variable, it is called: a.Two step b.Stepwise c.Simultaneous d.Backward step
Doctors are testing a new antidepressant. A group of patients, all with similar characteristics, take part in the study. Some of the patients receive the new drug, while others receive the traditional drug. The data are shown in the contingency table below. What is the relative risk of insomnia for those who receive the new drug? Round to two decimal places. Insomnia New drug- 52. No insomnia-226—total=278 Traditional drug-36. 295—331(total) Total- 88. 521. ( no insomnia)—— total-609
Several surveys in the United States and Europe have asked people to rate their happiness on a scale of 3 = "very happy," 2 = "fairly happy," and 1 = "not too happy," and then tried to correlate the answer with the person's income. For those in one income group (making $25,000 to $55,000) it was found that their "happiness" was approximately given by y = 0.065x - 0.613, where x is in thousands of dollars. Find the reported "happiness" of a person with the following incomes (rounding your answers to one decimal place). (a) $30,000 (b) $50,000 (c) $55,000

SEE MORE QUESTIONS

Recommended textbooks for you

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

SEE MORE TEXTBOOKS