Answered: The revenue of a new product is $56 per…

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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Question

The revenue of a new product is $56 per unit. The production cost is given by a discrete distribution that 60% the cost is about $20 per unit while 40% the cost is $35 per unit. The demand is normally distributed with mean 12000 units and standard deviation is 3500.

Given 1000 simulation, find average profit of the firm

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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