I have the answers, I just need to show the work for them that will then be uploaded as a file, so please follow the instructions and complete the needed worksheets. Make sure its clear and easy to read!

---> Show your work for parts (b) and (d). Upload your spreadsheet. (Submit a file with a maximum size of 1 MB.)

#1

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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Probability Labor Transportation Cost($) Cost ($) Probability Cost ($) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30 (a) Compute profit per unit for the base-case, worst-case, and best-case scenarios. Base Case using most likely costs Profit = $ 7 $ 7 /unit Worst Case Profit = $ 3 /unit Best Case Profit = $ 12 12 /unit (b) Construct a simulation model to estimate the mean profit per unit. (Use at least 1,000 trials.) $ 6.78 7.05 (c) Why is the simulation approach to risk analysis preferable to generating a variety of what-if scenarios? Simulation will provide a distribution v a distribution of the profit per unit values which can then be used to find the probability the probability of an unacceptable low profit. (d) Management believes the project may not be sustainable if the profit per unit is less than $5. Use simulation to estimate the probability the profit per unit will be less than $5. (Round your answer to three decimal places.) 0.0825 0.0825 Show your work for parts (b) and (d). Upload your spreadsheet. (Submit a file with a maximum size of 1 MB.)To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3,500, and the average first-year commission for each new account opened is $5,000. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. (a) Determine the equation for computing Gustin's profit per seminar, given values of the relevant parameters. Profit = (New Accounts Opened x 5,000) - 3,500 O Profit = (3,500 x 5,000) - New Accounts Opened O Profit = (New Accounts Opened x 3,500) - 5,000 O Profit = New Accounts Opened - (5,000 x 3,500) O Profit = 5,000 - (New Accounts Opened x 3,500) (b) What type of random variable is the number of new accounts opened? Hint: Review Appendix 12.1 for descriptions of various types of probability distributions. O integer uniform O discrete uniform O P binomial O normal O continuous (c) Construct a spreadsheet simulation model to analyze the profitability of Gustin's seminars. Would you recommend that Gustin continue running the seminars? (Perform at least 1,000 simulations. Round your answers to two decimal places.) expected profit = $ -2241.33 -2241.33 probability of a loss 0.78 0.78 Gustin should consider |discontinuing v discontinuing the seminars in their current format. Show your work. Upload your spreadsheet. (Submit a file with a maximum size of 1 MB.)