Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer in Excel without using the PSI statistic formulas in excel! Please explain your steps! Thank you! 1. The manager of an internet-based retailer,

image text in transcribedPlease answer in Excel without using the PSI statistic formulas in excel! Please explain your steps! Thank you!

1. The manager of an internet-based retailer, Moore's More, is trying to predict the revenue generated by each department in the next year. The manager has estimated the minimum and maximum growth rates possible for revenues in each department. The manager believes that any of the possible growth rates are equally likely to occur. These estimates are summarized in the table: DEPT. ELECTRONICS OFFICE SUPPLIES SPORTING GOODS TOYS HOBBY SUPPLIES CURRENT REVENUE $6,342,213 $1,203,231 $4,367,342 $3,543,537 $4,723,135 MIN. GROWTH RATE 2% -4% -2% -1% 4% MAX. GROWTH RATE 10% 5% 6% 8% 12% Currently, the total logistics costs are $5,321,776. The rate of change for logistics costs is Normally distributed with a mean of %2 with a standard deviation of %1. Create a spreadsheet to simulate the total profit that could occur in the coming year. Run 500 replications of the model and consider the following tasks: Construct a 95% confidence interval for the average level of total profit the manager could expect for the next year. b. According to your model, what are the chances that the total profit will be 5% larger than those in the next year. a

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

Information System Audit How To Control The Digital Disruption

Authors: Philippe Peret

1st Edition

1032136162, 978-1032136165

More Books

Students also viewed these Accounting questions

Question

10. Why is virtual memory not often used in embedded systems?

Answered: 1 week ago

Question

What is a single sign - on system used widely on the internet?

Answered: 1 week ago

Question

Did you include a prominent, attention-grabbing headline?

Answered: 1 week ago

Question

Did you follow BANGPP design checklist to review the layout?

Answered: 1 week ago