Mathematics, 26.06.2020 22:01 TheMixingToad

The management of Acme Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $100,000. The variable cost for the product is uniformly distributed between $20 and $28 per unit. Demand for the product is best described by a normal probability distribution with a mean of 5000 units and a standard deviation of 1250 units. (a) Perform a simulation of 500 trials. (b) What are the mean variable cost/unit and mean demand from the simulation? (c) What are the mean and standard deviation of the profit from the simulation? (d) Create a histogram showing the profit distribution. (e) What is the probability the product will result in a loss? (f) What is the value at risk (at 5%)? (g) Suppose Acme wants to introduce the product only if probability of loss is no more than 10%. Based on this, what is your recommendation?

Answers: 2

Show answers

Another question on Mathematics

Mathematics, 22.06.2019 01:00

For every corresponding pair of cross sections, the area of the cross section of a sphere with radius r is equal to the area of the cross section of a cylinder with radius and height 2r minus the volume of two cones, each with a radius and height of r. a cross section of the sphere is and a cross section of the cylinder minus the cones, taken parallel to the base of cylinder, is the volume of the cylinder with radius r and height 2r is and the volume of each cone with radius r and height r is 1/3 pie r^3. so the volume of the cylinder minus the two cones is therefore, the volume of the cylinder is 4/3pie r^3 by cavalieri's principle. (fill in options are: r/2- r- 2r- an annulus- a circle -1/3pier^3- 2/3pier^3- 4/3pier^3- 5/3pier^3- 2pier^3- 4pier^3)

Answers: 3

Answer

Mathematics, 22.06.2019 01:30

Find the vertex for the parabola given by the function ƒ(x) = −3x2 − 6x.

Answers: 2

Answer

Mathematics, 22.06.2019 02:00

If the angle bisectors of a pair of opposite angles of a quadrilateral are the opposite sides of a parallelogram formed by the two angle bisectors and two sides of the quadrilateral, is the quadrilateral always a parallelogram? explain your answer.

Answers: 3

Answer

Mathematics, 22.06.2019 06:00

Is 0.8 a rational or irrational number

Answers: 1

Answer

You know the right answer?

The management of Acme Manufacturing Company is considering the introduction of a new product. The f...

Questions