Quantitative Methods

Ueng thiz equation, compute PTC: preft (lo dollara) when resized denand is equal to 60,000 (the average demand). What is the estimate of the average profit (in dohars) assodased with the groduction quantity of 60,000 dolly? (Wse at least 1,000 trials. Rocnd your answer ts the nearest integer) (c) Compare the average proct estimated by simusation it part (b) to the preft calcuation in part (a). The average profit from the simulgtion is greater that the profit cemputod in part (a) The average profic from the simulation is iess than the protic conpved in part (a). Exgtain why they differ. Profit is limites by the productian quartily, so higher than twerage demand does not correlpsnd so higher profits, but lower demand wia lead to lower grofits. Since the demand is being modeled as a normal random variable, the aample mean profit will almays tend to be higher thas the true mean proft. Since the demand is being modeled as a nommal rabdom variatle, the sample mean peotit wil always tend to be lewer than the trve mean prer?. Froft is limited by the prosution qoantify, so lower than average demand boes not coeremond to lower protes, but higher demand walliad to Righer protts. (c) Before making a fial decision on the production quantity, manegement wants an malysis of a more appreswive 70,000 -unit groduction quantity and a more conservative 50,000 -unt production gaareity, Run your simulavion with these two production quantbes. (Use at least 1,000 trass. Round your answers to the peanest integer. Whot is the meen orofr (in dollers) associated with so, 000 units? What is the mean erore (in dotars) associeted wit 70,000 unas? (e) In add tion to meas orofa, whiat cther foctors thould FTC consider in determining a profuction quatbity? (Secect aff that apply) out feeling (c) Compare the average profit estimated by aimulation in part (b) to the profit calculation in part (a). The averape profit from the simulation is preater than the profir computed ia part (a) The sverage frefit tram the smulation is less tion the seofic computed in pert (o) Explain why ther adfer. Profit is limited by the production quantify, wo higher than average tainand ooes not correspons to higher prefts, but lower demasd will lead to lawer gesets. Since the deriand is being modeied as a nocmal random variable, the sarpy asal jincor will alaars tend to be higher than the true mean pront. Since the demand as being modeled as a normal fandom variabie, the canple mean proft will alivays tend to be lower than the true mean profi. Proft is limited by the production quantity, so lower than average demand does not comesoond to lower profits, but bigher demand will lead to hipher profits. (d) Before making a final decision on the production quantity, management wants an analysis of a more aggrestive 70,000 -unit production quantity and a more camarvative 50,000 -unit production quantity Aun your simulation with these two production quantales. (Use at leant 1,000 trialt. Reund ybur atwwers to the nearest intogec) What is the mean proft (in dollars) associated with 50,000 units? What is the mean profit (in dollars) associated with 70,000 units? (e) In addition to mean profit, what other factorn ahould FTC conslder in determining o production quantity? (Select all that opply.) gut foeling stock market probubility of a loss prodit standard deviation probabiliy of a shortage \begin{tabular}{c|c} \hline D4 & A \\ \hline & A \\ \hline 1 Fresh Toy Co. \end{tabular} 13 14 16 18 19 21 Simulation Trial Demand Net.Profit Summary Statistics Mean Net Profit a aiv/ol St. Dev, Net Probt a0IV/01 during the holiday seling season is extremely uncertain, Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a pood deseription of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it mants to conduct an analysis regarding this production quantity before finalizing the decision. (a) Determine the oquatien for computing HrC's petit for given walues of the relevant parameters e.g, demand, productien quantity, etc.). Using this equation, compute FTCs profit (in dollars) when realiaed demand is equal to 60,000 (the average demand). 5 (b) Modeling demand as a noemal random variabie with a mean of s0,000 and a standard deviation of 15 ,000, simulate the sales of the Dougie doll using a production cuantity of 60,000 units. What is the estimate of the average proit \{in dollars) associated with the production cuantity of 60,000 dolis? (Use at least 1,000 trials. Round your answer to the nearest integer] 5 (c) Compore the average proft estimated by simulatich in part (b) th the profit caiculation in part (a). The average profit from the simulasion is greater than the grofit comguted in part (a) The average profit from the simulation is less than the protit computed in gart (a). Euplain why ther differ. Profit is lamited by the production quancty, so higher than werage demand does not correspond to higher prohits, but lower demand will lesd to lower profith. Since the demand is being rodeled as a nomal random variable, the sample mean profit will always tend to be higher than the true mean probt. Since the demand is being modeled as a normal random variable, the sample mean profit will always tend to be lawer than the true mean protit. Profa is limiked by the produstion quanthy, so lower than average demand does nat correspond to lewer profits, but higher demand will lead to higher proris. (d) Before making a final decision on the production eoanthy, managernent wants an analysis of a more a9gressive 70 , 000-unit production quantity and a more conservative 50,000 -unit production quantity. Run your simulation with these two producbon quantibies. (Use at least 1,000 erals. Rsund your answers to the nearest integer) ) What is the mean profit (in dollars) associated nith $0,000 units? 5 What is the mean profit (in dollars) assoclated with 70,000 units? 5 (c) In addition to mean profit, what other factors should FfC consider in determining a production quantity? (Select all that apply-) gut teeling stock market probability of a loss profit standard deviation probability of a shortage Ueng thiz equation, compute PTC: preft (lo dollara) when resized denand is equal to 60,000 (the average demand). What is the estimate of the average profit (in dohars) assodased with the groduction quantity of 60,000 dolly? (Wse at least 1,000 trials. Rocnd your answer ts the nearest integer) (c) Compare the average proct estimated by simusation it part (b) to the preft calcuation in part (a). The average profit from the simulgtion is greater that the profit cemputod in part (a) The average profic from the simulation is iess than the protic conpved in part (a). Exgtain why they differ. Profit is limites by the productian quartily, so higher than twerage demand does not correlpsnd so higher profits, but lower demand wia lead to lower grofits. Since the demand is being modeled as a normal random variable, the aample mean profit will almays tend to be higher thas the true mean proft. Since the demand is being modeled as a nommal rabdom variatle, the sample mean peotit wil always tend to be lewer than the trve mean prer?. Froft is limited by the prosution qoantify, so lower than average demand boes not coeremond to lower protes, but higher demand walliad to Righer protts. (c) Before making a fial decision on the production quantity, manegement wants an malysis of a more appreswive 70,000 -unit groduction quantity and a more conservative 50,000 -unt production gaareity, Run your simulavion with these two production quantbes. (Use at least 1,000 trass. Round your answers to the peanest integer. Whot is the meen orofr (in dollers) associated with so, 000 units? What is the mean erore (in dotars) associeted wit 70,000 unas? (e) In add tion to meas orofa, whiat cther foctors thould FTC consider in determining a profuction quatbity? (Secect aff that apply) out feeling (c) Compare the average profit estimated by aimulation in part (b) to the profit calculation in part (a). The averape profit from the simulation is preater than the profir computed ia part (a) The sverage frefit tram the smulation is less tion the seofic computed in pert (o) Explain why ther adfer. Profit is limited by the production quantify, wo higher than average tainand ooes not correspons to higher prefts, but lower demasd will lead to lawer gesets. Since the deriand is being modeied as a nocmal random variable, the sarpy asal jincor will alaars tend to be higher than the true mean pront. Since the demand as being modeled as a normal fandom variabie, the canple mean proft will alivays tend to be lower than the true mean profi. Proft is limited by the production quantity, so lower than average demand does not comesoond to lower profits, but bigher demand will lead to hipher profits. (d) Before making a final decision on the production quantity, management wants an analysis of a more aggrestive 70,000 -unit production quantity and a more camarvative 50,000 -unit production quantity Aun your simulation with these two production quantales. (Use at leant 1,000 trialt. Reund ybur atwwers to the nearest intogec) What is the mean proft (in dollars) associated with 50,000 units? What is the mean profit (in dollars) associated with 70,000 units? (e) In addition to mean profit, what other factorn ahould FTC conslder in determining o production quantity? (Select all that opply.) gut foeling stock market probubility of a loss prodit standard deviation probabiliy of a shortage \begin{tabular}{c|c} \hline D4 & A \\ \hline & A \\ \hline 1 Fresh Toy Co. \end{tabular} 13 14 16 18 19 21 Simulation Trial Demand Net.Profit Summary Statistics Mean Net Profit a aiv/ol St. Dev, Net Probt a0IV/01 during the holiday seling season is extremely uncertain, Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a pood deseription of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it mants to conduct an analysis regarding this production quantity before finalizing the decision. (a) Determine the oquatien for computing HrC's petit for given walues of the relevant parameters e.g, demand, productien quantity, etc.). Using this equation, compute FTCs profit (in dollars) when realiaed demand is equal to 60,000 (the average demand). 5 (b) Modeling demand as a noemal random variabie with a mean of s0,000 and a standard deviation of 15 ,000, simulate the sales of the Dougie doll using a production cuantity of 60,000 units. What is the estimate of the average proit \{in dollars) associated with the production cuantity of 60,000 dolis? (Use at least 1,000 trials. Round your answer to the nearest integer] 5 (c) Compore the average proft estimated by simulatich in part (b) th the profit caiculation in part (a). The average profit from the simulasion is greater than the grofit comguted in part (a) The average profit from the simulation is less than the protit computed in gart (a). Euplain why ther differ. Profit is lamited by the production quancty, so higher than werage demand does not correspond to higher prohits, but lower demand will lesd to lower profith. Since the demand is being rodeled as a nomal random variable, the sample mean profit will always tend to be higher than the true mean probt. Since the demand is being modeled as a normal random variable, the sample mean profit will always tend to be lawer than the true mean protit. Profa is limiked by the produstion quanthy, so lower than average demand does nat correspond to lewer profits, but higher demand will lead to higher proris. (d) Before making a final decision on the production eoanthy, managernent wants an analysis of a more a9gressive 70 , 000-unit production quantity and a more conservative 50,000 -unit production quantity. Run your simulation with these two producbon quantibies. (Use at least 1,000 erals. Rsund your answers to the nearest integer) ) What is the mean profit (in dollars) associated nith $0,000 units? 5 What is the mean profit (in dollars) assoclated with 70,000 units? 5 (c) In addition to mean profit, what other factors should FfC consider in determining a production quantity? (Select all that apply-) gut teeling stock market probability of a loss profit standard deviation probability of a shortage