5th Edition

ISBN: 9781305250901

Author: Wayne L. Winston, S. Christian Albright

Publisher: Cengage Learning

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Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the pre…

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Chapter 10, Problem 42P

Simulation can be used to illustrate a number of results from statistics that are difficult to understand with nonsimulation arguments. One is the famous central limit theorem, which says that if you sample enough values from any population distribution and then average these values, the resulting average will be approximately normally distributed. Confirm this by using @ RISK with the following population distributions (run a separate simulation for each): (a) discrete with possible values 1 and 2 and probabilities 0.2 and 0.8; (b) exponential with mean 1 (use the RISKEXPON function with the single argument 1); (c) triangular with minimum, most likely, and maximum values equal to 1,9, and 10. (Note that each of these distributions is very skewed.) Run each simulation with 10 values in each average, and run 1000 iterations to simulate 1000 averages. Create a histogram of the averages to see whether it is indeed bell-shaped. Then repeat, using 30 values in each average. Are the histograms based on 10 values qualitatively different from those, based on 30?

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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Chapter 10, Problem 41P

Chapter 10, Problem 43P

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Durban woman, Nombulelo Mkumla, took to social media last week to share how she discovered the rodent.In a lengthy Facebook post, she said she purchased the loaf of bread from a local shop after work on August 27.For the next days, Mkumla proceeded to use slices of bread from the load to make toast."Then, on the morning of August 31, I took the bread out of the fridge to make toast and noticed something disgusting andscary. I took a picture and sent it to my friends, and one of them said, 'Yi mpuku leyo tshomi' [That's a rat friend]“."I was in denial and suggested it might be something else, but the rat scenario made sense - it's possible the rat got into thebread at the factory, and no one noticed," Mkumla said.She went back to the shop she'd bought the bread from and was told to lay a complaint directly with the supplier.She sent an email with a video and photographs of the bread.Mkumla said she was later contacted by a man from Sasko who apologised for the incident.According to…

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Chapter 10 Solutions

Practical Management Science

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Ch. 10.4 - Prob. 13P Ch. 10.4 - Prob. 14P Ch. 10.4 - Prob. 15P Ch. 10.5 - If you add several normally distributed random...Ch. 10.5 - In Problem 11 from the previous section, we stated...Ch. 10.5 - Continuing the previous problem, assume, as in...Ch. 10.5 - In Problem 12 of the previous section, suppose...Ch. 10.5 - Use @RISK to analyze the sweatshirt situation in...Ch. 10.5 - Although the normal distribution is a reasonable...Ch. 10.6 - When you use @RISKs correlation feature to...Ch. 10.6 - Prob. 24P Ch. 10.6 - Prob. 25P Ch. 10.6 - Prob. 28P Ch. 10 - Six months before its annual convention, the...Ch. 10 - Prob. 30P Ch. 10 - A new edition of a very popular textbook will be...Ch. 10 - Prob. 32P Ch. 10 - W. L. Brown, a direct marketer of womens clothing,...Ch. 10 - Prob. 34P Ch. 10 - Lemingtons is trying to determine how many Jean...Ch. 10 - Dilberts Department Store is trying to determine...Ch. 10 - It is surprising (but true) that if 23 people are...Ch. 10 - Prob. 40P Ch. 10 - At the beginning of each week, a machine is in one...Ch. 10 - Simulation can be used to illustrate a number of...Ch. 10 - Prob. 43P Ch. 10 - Prob. 46P Ch. 10 - If you want to replicate the results of a...Ch. 10 - Suppose you simulate a gambling situation where...Ch. 10 - Prob. 49P Ch. 10 - Big Hit Video must determine how many copies of a...Ch. 10 - Prob. 51P Ch. 10 - Prob. 52P Ch. 10 - Why is the RISKCORRMAT function necessary? How...Ch. 10 - Consider the claim that normally distributed...Ch. 10 - Prob. 55P Ch. 10 - When you use a RISKSIMTABLE function for a...Ch. 10 - Consider a situation where there is a cost that is...

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