A company that manufactures automobile parts is weighing the possibility of investing in an FMC (Flexible Manufacturing Cell). This is a separate investment and not a replacement of the existing facility. Management desires a good estimate of the distribution characteristics for the AW. There are three random variables, i.e., they have uncertainties in their values An economic analyst is hired to estimate the desired parameter, AW. He concludes that the scenario presented to him is suitable for Monte Carlo simulation (method of statistical trials) because there are uncertainties in three variables and the direct analytical approach is virtually impossible. All the elements subject to variation vary independently. Use Monte Carlo simulation to generate 10 AW outcomes for the proposed FMC. What is the standard deviation of the outcomes? Click the icon to view the estimates provided from the preliminary economic study of the situation. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. Use Monte Carlo simulation to generate 10 AW outcomes for the proposed FMC. (Round to the nearest hundreds.) One-Digit RNs (random numbers) Random Number Deviate (RNDs) -1.663 0.211 Three-Digit RNs (random numbers) 709 811 -0.476 0.239 0.201 - 1.725 -0.074 0.211 ODDDDDDDDD -0.871 384 - 1.164 433 The standard deviation of the outcomes is $ . (Round to the nearest hundreds.) Investment Normally distributed with mean of 220,000 and standard deviation of $10,000 Life Uniformly distributed with minimum of 3 years and maximum 12 years Market value $23,000 (single outcome) Annual net cash $20,000 probability 0.2 flow $18,000 probability 0.5 $24,000 probability 0.3 Interest rate 9% A company that manufactures automobile parts is weighing the possibility of investing in an FMC (Flexible Manufacturing Cell). This is a separate investment and not a replacement of the existing facility. Management desires a good estimate of the distribution characteristics for the AW. There are three random variables, i.e., they have uncertainties in their values An economic analyst is hired to estimate the desired parameter, AW. He concludes that the scenario presented to him is suitable for Monte Carlo simulation (method of statistical trials) because there are uncertainties in three variables and the direct analytical approach is virtually impossible. All the elements subject to variation vary independently. Use Monte Carlo simulation to generate 10 AW outcomes for the proposed FMC. What is the standard deviation of the outcomes? Click the icon to view the estimates provided from the preliminary economic study of the situation. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. Use Monte Carlo simulation to generate 10 AW outcomes for the proposed FMC. (Round to the nearest hundreds.) One-Digit RNs (random numbers) Random Number Deviate (RNDs) -1.663 0.211 Three-Digit RNs (random numbers) 709 811 -0.476 0.239 0.201 - 1.725 -0.074 0.211 ODDDDDDDDD -0.871 384 - 1.164 433 The standard deviation of the outcomes is $ . (Round to the nearest hundreds.) Investment Normally distributed with mean of 220,000 and standard deviation of $10,000 Life Uniformly distributed with minimum of 3 years and maximum 12 years Market value $23,000 (single outcome) Annual net cash $20,000 probability 0.2 flow $18,000 probability 0.5 $24,000 probability 0.3 Interest rate 9%
