6. (LO 11.2, 11.3) Monte Carlo simulation estimates the probabilities of uncertain events.

To execute a Monte Carlo simulation, we start by estimating the best-case, expected, and worst-case outcomes. Assume we are using Monte Carlo simulation to estimate the time to implement a real estate blockchain system with blockchain analytics and a userfriendly interface for 50 investors in a large condominium complex. The Blockchain will keep track of all transactions, events, and documents related to the complex, including sales, purchases, titles, and credit checks. The system requires programming five different sections of code that work together. Given that blockchain is a newer technology, it is uncertain how many weeks will be needed to create each section. The following Monte Carlo probability graph has been generated based on 1 million iterations.

a. What is the (estimated) minimum time required to create the blockchain system?
What is the associated probability of completing the project in that number of weeks?

b. What is the (estimated) maximum time required to create the blockchain system?
What is the associated probability of completing the project in that number of weeks?

c. If you wanted to be 80 percent certain that the project will be completed before or on a specified week when scheduling the project, how many days would you schedule the project for?

Probability s 2 Wooks