### Create an Account

Already have account?

### Forgot Your Password ?

Home / Questions / (All answers were generated using 1,000 trials and native Excel functionality.) The manag...

# (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

(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:

 ProcurementCost (\$) Probability LaborCost (\$) Probability TransportationCost (\$) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30
 (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: \$ 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 proportion? Round your answers to one decimal of a percentage. Lower Bound:  % Upper Bound:  %

Apr 14 2021 View more View Less