Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I solve the problem using excel (NOT the @Risk add-in) 2. Based on Ch 12. Suppose you received additional information about Seven Flags.

How do I solve the problem using excel (NOT the @Risk add-in)

image text in transcribed 2. Based on Ch 12. Suppose you received additional information about Seven Flags. Now you are able to include risk into your analysis. In a typical summer season, the number of adult tickets sold has a normal distribution with a mean of 20,000 and a standard deviation of 2,000 . The number of children's tickets sold has a normal distribution with a mean of 10,000 and a standard deviation of 1,000 . Adult ticket prices are $18 and the children's price is $10. Revenue from food and beverage concessions is estimated to be between $50,000 and $100,000, with a most likely value of $60,000. Likewise, souvenir revenue has a minimum of $20,000, most likely value of $25,000, and a maximum value of $30,000. Variable costs per person (adult or child) are $3, and fixed costs amount to $150,000. Determine the distribution of profit for this business using 500 trials. Plot the distribution. What is the probability that the park will make a profit of $250,000 or less (the CEO is losing sleep over it)? Random value cells should be active in your calculations. 2. Based on Ch 12. Suppose you received additional information about Seven Flags. Now you are able to include risk into your analysis. In a typical summer season, the number of adult tickets sold has a normal distribution with a mean of 20,000 and a standard deviation of 2,000 . The number of children's tickets sold has a normal distribution with a mean of 10,000 and a standard deviation of 1,000 . Adult ticket prices are $18 and the children's price is $10. Revenue from food and beverage concessions is estimated to be between $50,000 and $100,000, with a most likely value of $60,000. Likewise, souvenir revenue has a minimum of $20,000, most likely value of $25,000, and a maximum value of $30,000. Variable costs per person (adult or child) are $3, and fixed costs amount to $150,000. Determine the distribution of profit for this business using 500 trials. Plot the distribution. What is the probability that the park will make a profit of $250,000 or less (the CEO is losing sleep over it)? Random value cells should be active in your calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Futures And Options Markets

Authors: John C. Hull

8th Global Edition

1292155035, 9781292155036

More Books

Students also viewed these Finance questions