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using simulatio to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) 10. 11 12 Labor Probability Cost ($) Probability 0.25 0.45 0.30 20 7.27 22 24 25 0.10 0.25 0.35 0.30 Transportation Cost ($) 3 5 Probability 0.75 0.25 (a) Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average? Round your answers to two decimal places. Lower Bound: $ 7.03 Upper Bound: $ (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. What is a 95% confidence interval around this prenestiae?

using simulatio to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) 10. 11 12 Labor Probability Cost ($) Probability 0.25 0.45 0.30 20 7.27 22 24 25 0.10 0.25 0.35 0.30 Transportation Cost ($) 3 5 Probability 0.75 0.25 (a) Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average? Round your answers to two decimal places. Lower Bound: $ 7.03 Upper Bound: $ (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. What is a 95% confidence interval around this prenestiae?

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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(All answers were generated using 1,000 trials and native Excel functionality.) 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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) 10. 11 12 Labor Probability Cost ($) Probability 0.25 0.10. 0.45 0.25 0.30 0.35 20 7.27 22 Upper Bound: 24 25 Round your answers to two decimal places. Lower Bound: $ 7.03 Upper Bound: $ 0.09 0.30 Transportation Cost ($) (a) Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average? Round your answers to one decimal of a percentage. Lower Bound: % 0.06 % 3 5 (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. What is a 95% confidence interval around this proportion? Probability 0.75 0.25
Transcribed Image Text:(All answers were generated using 1,000 trials and native Excel functionality.) 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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) 10. 11 12 Labor Probability Cost ($) Probability 0.25 0.10. 0.45 0.25 0.30 0.35 20 7.27 22 Upper Bound: 24 25 Round your answers to two decimal places. Lower Bound: $ 7.03 Upper Bound: $ 0.09 0.30 Transportation Cost ($) (a) Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average? Round your answers to one decimal of a percentage. Lower Bound: % 0.06 % 3 5 (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. What is a 95% confidence interval around this proportion? Probability 0.75 0.25
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