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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 Probability 0.25 0.40 0.35 to Labor Cost ($) 20 22 24 25 Probability Transportation Cost ($) Probability 0.15 0.20 0.35 0.30 3 5 0.75 0.25 (a) Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) average $ varlance What is a 95% confidence interval (In $) around this average? (Round your answers to two decimal places.) $ to $ (b) Management belleves 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. (Use at least 1,000 trials. Round your answer to three decimal places.) What is a 95% confidence interval around this proportion? (Round your answers to three decimal places.)

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 Probability 0.25 0.40 0.35 to Labor Cost ($) 20 22 24 25 Probability Transportation Cost ($) Probability 0.15 0.20 0.35 0.30 3 5 0.75 0.25 (a) Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) average $ varlance What is a 95% confidence interval (In $) around this average? (Round your answers to two decimal places.) $ to $ (b) Management belleves 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. (Use at least 1,000 trials. Round your answer to three decimal places.) What is a 95% confidence interval around this proportion? (Round your answers to three decimal places.)

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter4: Eigenvalues And Eigenvectors
Section4.6: Applications And The Perron-frobenius Theorem
Problem 22EQ
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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 Probability 0.25 0.40 0.35 to Labor Cost ($) 20 22 24 25 Probability Transportation Cost ($) 0.15 0.20 0.35 0.30 3 5 Probability 0.75 0.25 (a) Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) average $ varlance What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.) $ to $ (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. (Use at least 1,000 trials. Round your answer to three decimal places.) What is a 95% confidence interval around this proportion? (Round your answers to three decimal places.)
Transcribed Image Text: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 Probability 0.25 0.40 0.35 to Labor Cost ($) 20 22 24 25 Probability Transportation Cost ($) 0.15 0.20 0.35 0.30 3 5 Probability 0.75 0.25 (a) Construct a simulation model to estimate the average profit (in $) per unit and the variance of the profit per unit. (Use at least 1,000 trials. Round your answer to two decimal places.) average $ varlance What is a 95% confidence interval (in $) around this average? (Round your answers to two decimal places.) $ to $ (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. (Use at least 1,000 trials. Round your answer to three decimal places.) What is a 95% confidence interval around this proportion? (Round your answers to three decimal places.)
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