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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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Labor Probability Cost ($) Probability Procurement Cost ($) 10 0.25 T 11 0.45 12 0.30 20 22 24 25 % 0.10 % 0.25 0.35 0.30 Transportation Cost ($) 3 5 (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: $ 11.05 Upper Bound: $ 12 (b) Mana gement 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? Round your answers to one decimal of a percentage. Lower Bound: Upper Bound: Probability 0.75 0.25

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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Labor Probability Cost ($) Probability Procurement Cost ($) 10 0.25 T 11 0.45 12 0.30 20 22 24 25 % 0.10 % 0.25 0.35 0.30 Transportation Cost ($) 3 5 (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: $ 11.05 Upper Bound: $ 12 (b) Mana gement 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? Round your answers to one decimal of a percentage. Lower Bound: Upper Bound: Probability 0.75 0.25

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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Labor Cost ($) Probability Cost ($) Probability 10 11 12 0.25 0.45 0.30 20 22 24 25 0.10 % 0.25 % 0.35 0.30 Transportation Cost ($) 3 5 Probability 0.75 (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: $ 11.05 0.25 Upper Bound: $ 12 (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? Round your answers to one decimal of a percentage. Lower Bound: Upper Bound:
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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Labor Cost ($) Probability Cost ($) Probability 10 11 12 0.25 0.45 0.30 20 22 24 25 0.10 % 0.25 % 0.35 0.30 Transportation Cost ($) 3 5 Probability 0.75 (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: $ 11.05 0.25 Upper Bound: $ 12 (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? Round your answers to one decimal of a percentage. Lower Bound: Upper Bound:
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