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Profitability of New Product. The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The
Profitability of New Product. 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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Probabil Labor Cost Probabil Transportation Probabil Cost ($) ity ($) ity Cost ($) ity 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 Construct a simulation model to estimate the average profit per unit. What is a 95% confidence interval around this average
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