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 (S) 10 0.20 20 0.15 3 0.75 11 0.45 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.) $ 11.15 23 30 average variance What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.) $ 11.27 x to s 23.18 (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
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 (S) 10 0.20 20 0.15 3 0.75 11 0.45 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.) $ 11.15 23 30 average variance What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.) $ 11.27 x to s 23.18 (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
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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Solve b parts
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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows.
Labor
Cost ($)
Procurement
Probability
Probability
Transportation Cost ($)
Probability
Cost (S)
10
0.20
20
0.15
3
0.75
11
0.45
22
0.20
0.25
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.)
$ 11.15
23.30
sverage
variance
What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.)
$ 11.27
x to s 23.18
(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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