=c. Assume now that the estimate of $1 million for the cost of doing full-fledged market research
Question:
=c. Assume now that the estimate of $1 million for the cost of doing full-fledged market research is correct but that there is some uncertainty in the financial data ($15 million, $6 million, and $600) stated in Problem 9.20. Each could vary from its base value by as much as 10 percent. For each one, perform sensitivity analysis to find what would happen if its value were at either end of this range of variability
(without any change in the other two pieces of data).
Then do the same for the eight cases where all these pieces of data are at one end or the other of their ranges of variability.
d. Because of the uncertainty described in part
c, use SensIt to generate a graph that plots the expected profit over the range of variability for each piece of financial data (without any change in the other two pieces of data).
e. Generate the corresponding spider chart and tornado chart.
Step by Step Answer:
Introduction To Management Science A Modeling And Case Studies Approach With Spreadsheets
ISBN: 9780078096600
4th Edition
Authors: Frederick S. Hillier And Mark S. Hillier