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business analytics, need help with example problem from midterm study guide, if possible can you show how you set up the excel file The management
business analytics, need help with example problem from midterm study guide, if possible can you show how you set up the excel file
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $43 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Labor Transportation Cost ($) Probability Cost ($) Probability Cost ($) Probability 9 0.22 18 0.10 3 0.60 10 0.43 20 0.25 5 0.25 11 0.23 24 7 0.35 0.15 12 0.12 26 0.27 27 0.03 a) (10 points) Construct a simulation model (with 1000 trials) to estimate the average profit per unit. b) (5 points) Include the following summaries: 1. Average profit 2. Standard deviation of profit 3.95% confidence interval for profit 4. Proportion of profits less than $5 5. Standard error of the proportion of profits less than $5 6.95% confidence interval for proportion of profits less than $5 The summaries should be computed in Excel using appropriate formulas and cell references. For example, if your simulated profit values are in cells E35 to E1034, and you want to compute average in cell G34, you should type =AVERAGE(E35:E1034) in cell G34 Step by Step Solution
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