Black Klawson (BK) is considering developing a new machine that will be marketed to tire manufacturers.First, BK wants to analyze the profitability of this machine.

The fixed cost is assumed to follow a uniform distribution between $4 million and $6 million.

The company thinks the demand (in units) for the machine is described by a normal distribution with mean of 700 and standard deviation of 300.

The unit selling price will be $22,000.

The variable cost has discrete distribution as shown.

(a) Fill in the random number interval blanks (lower and upper limits) in the Variable Cost table.

(b) Simulate 150 profits in the given Simulation table and find the mean profit. Use the random numbers given to you for simulation.

(c) Find the probability that the profit will be at least $2 million.

(d) Find the probability of loss.