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 $45 per unit. Probabilitydistributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows.ProcurementCost ($)101112Probability0.250.400.35toLaborCost ($)20222425Probability Transportation Cost ($)0.150.200.350.3035Probability0.750.25(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 $varlanceWhat 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 atleast 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.)

Given information: Procurement Cost($) Probability Labor Cost($) Probability Transportation…

Answered: The management of Brinkley Corporation…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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An automotive center keeps track of customer complaints received each week. The probability distributions of complaints are shown below. The random variable, xi, represents the number of complaints, and p(xi) is the probability of receiving xi complaints for two of the stores. The cost impact of each complaint is believed to be y=$10x3 where x is the number of complaints. Store A xi 0 1 2 3 4 5 6 p(xi) 0.10 0.15 0.20 0.25 0.15 0.10 0.05 Store B xi 0 1 2 3 4 5 6 p(xi) 0.10 0.15 0.25 0.22 0.13 0.08 0.07 Sample from these distributions to compute the total number of complaints (store A+B) per week for 52 weeks.
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $150, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $140,000. g. What are the expected value and variance of your profit?
The figure below shows survival probabilities from all-cause mortality over 20 years in participants over 50 years of age who have normal glucose, glucose intolerance, and Type II diabetes mellitus. Estimate the 5-year survival probability for Type II diabetes. a. approximately 10% b. approximately 60% c. approximately 76% d. approximately 84%
Español Investment Return Construct a probability distribution for the data and draw a graph for the distribution. The probabilities of a return on an investment of 1 1 15 15 15 11 and respectively. $3000, $8000, $10,000, and $14,000 are 15 Part: 0/2. Part 1 of 2 Enter your answers as fractions or as decimals rounded to 2 decimal places. P (X) $3000 $8000 $10,000 $14,000
The following represents the probability distribution for the daily demand of microcomputers at a local store. Demand Probability 0 .1 1 .2 2 .3 3 .2 4 .2 The expected daily demand is _____. a. 1.0 b. 2 c. 2.2 d. 4
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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30 Compute profit per unit for the base-case, worst-case, and best-case scenarios. Construct a simulation model to estimate the mean profit per unit. Why is the simulation approach to risk analysis preferable to generating a variety of what-if scenarios? Management believes the project may not be sustainable if the profit per unit is less than $5. Use simulation to estimate the probability the profit per unit will be less than $5.
An automotive center keeps track of customer complaints received each week. The probability distributions of complaints are shown below. The random variable, xi, represents the number of complaints, and p(xi) is the probability of receiving xi complaints for two of the stores. The cost impact of each complaint is believed to be y=$10x3 where x is the number of complaints. Store A xi 0 1 2 3 4 5 6 p(xi) 0.10 0.15 0.20 0.25 0.15 0.10 0.05 Store B xi 0 1 2 3 4 5 6 p(xi) 0.10 0.15 0.25 0.22 0.13 0.08 0.07 Compute the simulated averages and standard deviations of the number of complaints per week for each store and the total for both stores over the 52 weeks. Compare to the theoretical mean and standard deviations.
PRACTICE ANOTHER Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are the auditor for a very large corporation. The revenue file contains millions of numbers in a large computer data bank. You draw a random sample of n = 225 numbers from this file and r = 85 have a first nonzero digit of 1. Let p represent the population proportion of all numbers in the computer file that have a leading digit of 1. What is the value of the sample test statistic? (Round your answer to two decimal places.) ANSWER IS NOT 2.57 Find the P-value of the test statistic. (Round your answer to four decimal places.) ANSWER IS NOT 0.0102
A probability distribution for five possible market conditions is shown below, along with the expected demand in each state. Calculate the expected value (mean) and standard deviation of demand. Market condition Probability Demand (Thousands of units) Terrible 5% 5 Poor 20% 15 Average 50% 30 Good 20% 50 Excellent 5% 75 If you ignored the probability weights and assumed the market conditions were equally probable, the mean demand would be 35,000 units and the standard deviation would be 25,100 units. Using the probability weights, calculate the following statistics: Expected mean = Standard deviation =
part C D E

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