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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows. Procurement Cost ($) Labor Cost ($) Probability Transportation Cost ($) Probability Probability 10 0.25 20 0.15 3 0.75 11. 0,40 22 0.20 0.25 12 0.35 24 0.35 25 0.30 (a) Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) average %24 variance What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.) to $
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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows. Procurement Cost ($) Labor Cost ($) Probability Transportation Cost ($) Probability Probability 10 0.25 20 0.15 3 0.75 11. 0,40 22 0.20 0.25 12 0.35 24 0.35 25 0.30 (a) Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) average %24 variance What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.) to $
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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Transcribed Image Text: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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated
as follows.
Procurement
Labor
Cost ($)
Probability
Cost ($)
Probability Transportation Cost ($) Probability
10
0.25
20
0.15
3
0.75
11
0,40
22
0.20
0.25
12
0.35
24
0.35
25
0.30
(a) Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000
trials. Round your answer to two decimal places.)
average
variance
What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.)
to $
(b) Management belleves 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. (Use at least 1,000 trials. Round your answer to three decimal places.)
What is a 95% confidence interval around this proportion? (Round your answers to three decimal places.)
to
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