Herman Quilly is the cost accountant for the Lockwood Corporation. In attempting to perform a Monte Carlo simulation, to assess the profitability of one of the firm’s product lines, he has estimated the probability for several random variables that will influence profits. For one of these random variables, fixed costs, he has estimated the following probability distribution: pg74

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Fixed costs Probability $1.0 million .20 1.2 million .20 1.5 million .30 2288 1.8 million .30 Based on the above distribution, he assigned two-digit representative numbers to each of the four possible outcomes. The assignment of numbers is as follows: Representative Fixed costs numbers assigned $1.0 million 1.2 million 1.5 million 1.8 million Required: 1-20 21-40 40-70 70-99 Explain why Herman Quilly's assignment of the representative numbers is not proper.