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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows. Labor Cost ($) Procurement Probability Probability Transportation Cost ($) Probability Cost ($) 10 0.25 20 0.15 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 bellieves 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
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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows. Labor Cost ($) Procurement Probability Probability Transportation Cost ($) Probability Cost ($) 10 0.25 20 0.15 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 bellieves 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
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 15PPS
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Question
find A and B please
![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 $45 per unit. Probability
distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows.
Labor
Probability Cost ($)
Procurement
Probability
Transportation Cost ($) Probability
Cost ($)
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 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. (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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55d7d476-142a-464a-9a3c-33461276aa85%2F1ebc4e6a-fffa-419d-8fa6-9100d1cfb3d4%2Fhnxc4wh_processed.jpeg&w=3840&q=75)
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 $45 per unit. Probability
distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows.
Labor
Probability Cost ($)
Procurement
Probability
Transportation Cost ($) Probability
Cost ($)
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 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. (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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