MTH301 Week 6

Homework

1. You are an insurance adjuster. On average there are between 10 and 50 storm damaged roofs each year. Your job is to come up with an estimate of the number of storms for the upcoming year.
   • Run a simulation 500 times and determine the average number of roof damages you would expect.
   • What is the standard deviation of the 500 possible events?
   • Show all work (spreadsheet included) as each student's answers will be different

1. Use the following data to solve problem #2:
   • Fixed costs $2,500
   • Variable cost per unit $1.00
   • Selling price per unit $6.00
   • Run a simulation for production runs in increments of 100 (run 15)
   • At what production level in the company profitable
   • What is the amount of profit?
   • What is the maximum profit under these conditions
   • Show all work on spreadsheet