The revenue of a new product is $60 per unit. The production cost is given by a discrete distribution that: 40% chance that the cost is about $25 per unit, 40% chance that the cost is $30 per unit, and 20% chance that the cost is $35 per unit. The labor cost per unit is normally distributed with mean $10 and standard deviation of $3. The demand is normally distributed with mean 14000 units and standard deviation of 3000 units. For 1000 simulation trials, calculate the average profit and 95% confidence interval of the average profit.
The revenue of a new product is $60 per unit. The production cost is given by a discrete distribution that: 40% chance that the cost is about $25 per unit, 40% chance that the cost is $30 per unit, and 20% chance that the cost is $35 per unit. The labor cost per unit is normally distributed with mean $10 and standard deviation of $3. The demand is normally distributed with mean 14000 units and standard deviation of 3000 units. For 1000 simulation trials, calculate the average profit and 95% confidence interval of the average profit.
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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- The revenue of a new product is $60 per unit. The production cost is given by a discrete distribution that: 40% chance that the cost is about $25 per unit, 40% chance that the cost is $30 per unit, and 20% chance that the cost is $35 per unit.
The labor cost per unit is
For 1000 simulation trials, calculate the average profit and 95% confidence interval of the average profit.
Submit in an excel file
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