Question
Please do this in excel! A sweatshirt supplier is trying to decide how many sweatshirts to print for the upcoming NCAA basketball championships. The final
Please do this in excel!
A sweatshirt supplier is trying to decide how many sweatshirts to print for the upcoming NCAA basketball championships. The final four teams have emerged from the quarterfinal round, and there is now a week left until the semifinals, which are then followed in a couples of days by the finals. Depending on the design of each teams logo, the unit production cost for each sweatshirt follows a continuous uniform distribution between $8 and $12. This supplier is in the early stage of an auction process to purchase production equipment from one of two bidding manufacturers. There is 50% chance to purchase the equipment from manufacturer A for $9000, another 50% chance to purchase from Manufacturer B for $7500. The firm predicts that a sweatshirt can be sold for as low as $20, as high as $40, but most likely $30 each (i.e., following a symmetric triangular distribution), depending on the popularity of the team. Based on a market survey, the marketing department estimates that the sales volume will follow a normal distribution with a mean of 500 and a standard deviation of 50. Note that sales volume must be an integer.
(1) Build a profit model that incorporates the uncertainties in price, unit cost, fixed cost, and demand quantity.
(2) Use Data Table function to generate 1000 trials of profit. Copy these 1000 random values, and in another blank cell in the same worksheet, paste in the values only.
(3) Use these 1000 frozen values to report the Descriptive Statistics (output option: Summary Statistics), and percentiles. Provide a brief summary on the firms prospective profit.
Make sure to retain all the formulas in the worksheet.
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